PM Cona Industries Files IPO Papers With SEBI to Fund Capex

Electrical products manufacturer PM Cona Industries has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. 

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The proposed IPO will include a fresh issue of equity shares worth up to ₹120 crore along with an offer for sale of 45 lakh shares by promoter Prakash Naraindas Motwani, according to the company’s draft red herring prospectus filed on Tuesday. 

The Mumbai-based company plans to deploy the fresh capital across manufacturing capacity, retail expansion and brand-building initiatives. 

Fresh issue of up to ₹120 crore 

PM Cona Industries’ proposed public offering has two components. 

The company will issue fresh equity shares worth up to ₹120 crore, while promoter Prakash Naraindas Motwani will sell 45 lakh equity shares through the offer-for-sale portion. 

Since the OFS involves the sale of shares by an existing shareholder, proceeds from that part of the issue will not form part of the fresh capital being raised by the company. 

The report does not disclose the price band, total valuation of the IPO or proposed dates for the issue. 

IPO proceeds to fund plant and machinery 

PM Cona Industries plans to use proceeds from the fresh issue for capital expenditure, including the purchase of plant, equipment and machinery. 

Part of the funds will also go towards setting up 50 new display showrooms. 

Brand-building and marketing initiatives are another proposed use of the fresh capital, while a portion has been earmarked for general corporate purposes. 

The IPO, therefore, would provide the company with funds for both manufacturing-related investment and expansion of its physical product display network. 

PM Cona operates in low-voltage electrical equipment market 

Mumbai-based PM Cona Industries manufactures electrical products primarily for the low-voltage electrical equipment market. 

Its products cater to domestic as well as commercial applications. 

The company manufactures fast-moving electrical goods and wires under the ‘PM CONA’ brand. 

No additional operating or financial figures for the company were disclosed in the report. 

Shares proposed to list on BSE and NSE 

PM Cona Industries intends to list its equity shares on both the BSE and the National Stock Exchange of India. 

Valmiki Leela Capital has been appointed as the book-running lead manager for the proposed public issue, while KFin Technologies will serve as the registrar. 

The filing of the draft red herring prospectus begins the regulatory process for the proposed IPO. Further details such as the price band and issue schedule were not disclosed in the report.