Promoters to sell shares to provide working capital for Marshall Machines – Ultra News

Industrial automation player Marshall Machines said its promoters would sell about 3.4% of the business to raise capital to meet the company’s working capital needs.

The promoters currently own about 73.4% of total shares outstanding, which will drop to 70% by year-end. A 3.4% stake in the company is worth around Rs 2 cr at today’s prices.

The company was listed on the NSE SME Exchange three years ago and moved to the NSE Main Exchange a month ago.

The factory automation company had raised around Rs 16 cr via its IPO on the NSE SME stock exchange at the end of 2018, setting each of its shares at Rs 42.00.

However, it listed below the IPO price, at Rs 37.45, before closing on the first day of trading at Rs 39.30.

Three years later, it debuted on the main exchange at Rs 31.40 per share on November 22, but quickly hit Rs 66.20 / share on December 1. nowadays.

With 1.45 cr shares outstanding, the company has a market capitalization of Rs 58.5 cr.

The Punjab-based company had a turnover of around Rs 65 cr / year at the time of the IPO, thanks to clients like Havells, Hero, Amtek Auto and Usha in sectors such as automotive, home appliances, engineering, aerospace, electronics and medical equipment.

The company now says it is facing a surge in demand for its solutions, known as CNC or CNC machines. CNC machines are the building blocks of automation in the factory and can perform a variety of tasks such as cutting and drilling for humans, and are controlled by software.

Marshall Machines said it needed additional working capital as its order book swelled to Rs 51 cr at the end of September from Rs 28 cr a year ago. In addition, he said he was at an advanced stage of tendering for contracts worth Rs 165 cr at the end of September this year, up from Rs 47 cr last year. .

“The company needs working capital to fulfill the existing order book and accept new orders,” he said.

Managing Director Gaurav Sarup, who is also one of the company’s promoters along with Pashant Sarup, said the surge in demand prompted the company to set a target of Rs 250 cr in turnover. In the coming years”.

“The strong demand for our automated machines has resulted in a healthy order book and a strong order supply,” he said.

The funds raised by the promoters by selling the shares will be channeled to the company in the form of interest-free loans. In other words, the company will have to repay the money, but will not have to pay interest or issue shares.