North-based SMEs tap capital market to raise funds for expansion
Vijay C Roy
Chandigarh, January 31
Slowly and gradually, northern region-based small and medium enterprises (SMEs) are tapping the capital market to raise capital for growth and expansion. After Ludhiana-based Superfine Knitters, Dolfin Rubbers, Amritsar-based ANG lifesciences and Mohali-based Jonjua Overseas Limited, now Panchkula-based automotive component manufacturer-Emmforce Autotech Limited have announced the filing of its Draft Red Herring Prospectus (DRHP) with the BSE SME. The offer comprises fresh issuance of 55,00,000 equity shares, each with a face value of Rs 10.
According to the DRHP, the company intends to invest Rs 10 crore from the IPO proceeds in its recently acquired subsidiary company Emmforce Mobility Solutions Private Limited (EMSPL) for setting up a new manufacturing plant at Jharmajri, Baddi, Himachal Pradesh, in the form of equity or debt to meet the requirement of working capital and margin money for term loan of subsidiary company and Rs 27 crore to meet Emmforce’s working capital requirements and for general corporate purposes.
Ashok Mehta, chairman and managing director, Emmforce Autotech Limited, said, “We are planning to invest proceeds from the IPO in our subsidiary company EMSPL to expand its manufacturing capabilities and cater to untapped territories, including Europe, South America, Africa, West Asia, Asia Pacific and India. Apart from supplying four-wheel drive and performance racing vehicles, we are looking to broaden our product line to serve unexplored sectors like agriculture, EV, Railways and Defence.”
Unlock Exclusive Insights with The Tribune Premium
Take your experience further with Premium access.
Thought-provoking Opinions, Expert Analysis, In-depth Insights and other Member Only Benefits
Already a Member? Sign In Now