Precision Camshafts IPO Details

Issue Open Jan 27, 2016
Issue Close Jan 29, 2016
IPO Price ₹186
Face Value ₹10
IPO Size ₹410.00 Cr
Listing At BSE, NSE
IPO Lot Size 80

PRECISION CAMSHAFTS LIMITED

The Company was incorporated as 'Precision Camshafts Private Limited' on June 8,1992 under the Companies Act, 1956 ("Companies Act 1956"), with the Registrarof Companies, Maharashtra at Mumbai. Pursuant to conversion of the Company into a public limited company, our name was changed to 'Precision Camshafts Limited' and a fresh certificate of incorporation consequent upon change of name on conversion to public limited company was issued by the Registrar of Companies, Maharashtra at Mumbai on August 1,1997. Pursuant to a resolution of the board of directors of the Company dated January 10,2001, the registered office of the Company was shifted from 51, Sarvodaya Mousing Society, Hotgi Road, Solapur, 413 003, Maharashtra, India to E102/103, MIDC, Akkalkot Road,Solapur 413006, Maharashtra, India with effect from January 10, 2001 and the relevant filings were made by the Company with Registrar of Companies, Maharashtra at Pune. For more information in relation to change in name and Registered Office of the Company, see "History and Certain Corporate Matters" on page 143 of the Prospectus dated February 1,2016 filed with the Registrarof Companies, Maharashtra at Pune ("Prospectus")

Registered Office: E -102/103 MIDC, Akkalkot Road, Solapur 413 006, Maharashtra, India. Tel: (+ 91 217) 3295433; Fax: (+ 91 217) 2653398. Corporate Office: D-5, D-6, D-7, D-7/1, MIDC, Chincholi, Solapur-Pune Highway, Solapur 413 255, Maharashtra, India. Tel: (+ 91 217) 3295430; Fax: (+ 91 217) 2357645; Contact Person: Mr. Swapneel Kuber, Company Secretary and Compliance Officer, Tel: (+ 91 20) 69401114, Fax: (+ 91 217) 2653398; E-mail: sskuber@pclindia.in; Website: www.pclindia.in; Corporate Identity Number: U24231PN1992PLC067126

PROMOTERS OF THE COMPANY: MR. YATIN SHAH AND DR. SUHASINI SHAH

BASIS OF ALLOTMENT

The Equity Shares of the Company are proposed to be listed on the BSE Limited ("BSE") and the National Stock Exchange of India Limited ("NSE"). The Company has received listing and trading approval from BSE and NSE and trading in Equity Shares will commence on February 8,2016.

INITIAL PUBLIC OFFERING OF 22,053,225 EQUITY SHARES OF FACE VALUE OF RS 10 EACH (THE "EQUITY SHARES") OF PRECISION CAMSHAFTS LIMITED ("PRECISION CAMSHAFTS" OR "OUR COMPANY" OR "THE COMPANY" OR "THE ISSUER") FOR CASH AT A PRICE OF RS 186 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 176 PER EQUITY SHARE) (THE "OFFER PRICE") AGGREGATING UP TO RS 4,101.90 MILLION (THE "OFFER"). THE OFFER COMPRISES A FRESH ISSUE OF 12,903,225 EQUITY SHARES AGGREGATING UP TO RS 2,400 MILLION BY OUR COMPANY (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 9,150,000 EQUITY SHARES AGGREGATING UP TO RS 1,701.90 MILLION BY THE SELLING SHAREHOLDERS (AS DEFINED IN THE "DEFINITIONS AND ABBREVIATIONS" SECTION ON PAGE 1 OF THE PROSPECTUS) (THE "OFFER FOR SALE"). THE OFFER CONSTITUTES 23.28% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

The Offer Price : RS 186 per Equity Share of Face Value of RS 10 each
The Offer Price is 18.6 times of the Face Value
Anchor Investor Offer Price: RS 186 per Equity Share

Risks to Investors:

(i) The three BRLMs associated with the Offer have handled seven public issues in the past three years, out of which three issues closed below the issue price on listing date.

(ii) The Price / Earnings ratio based on consolidated diluted EPS for the latest full financial year for the Issuer at the upper end of the Price band is as high as 24.41 times. There are no listed companies in India that engage in the manufacturing of camshafts.

(iii) As on date of the Red Herring Prospectus, the average cost of acquisition per Equity Share by our Promoters and Selling Shareholders, Mr. Yatin Shah and Dr. Suhasini Shah is Rs 0.25 and Rs. 1.89, respectively, and by our other Selling Shareholders,
Mr. Jayant Aradhye and Cams Technology Limited is Rs.0.51 and Rs 38.56, respectively.

BID/OFFER OPENED ON WEDNESDAY, JANUARY 27, 2016

BID/OFFER CLOSED ON (FOR ALL BIDDERS) FRIDAY, JANUARY 29, 2016

ANCHOR INVESTOR BIDDING DATE: MONDAY, JANUARY 25, 2016

In terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended, (the "SCRR") the Offer is made for 23.28% of the post-Offer paid-up Equity Share capital of our Company. The Offer is made through 100% Book Building Process, in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended the ("SEBIICDR Regulations") wherein 50% of the Offer was allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (the "QIB Category"). Our Company and the Selling Shareholders, in consultation with the Book Running Lead Managers ("BRLMs"), had allocated up to 60% of the QIB Category to Anchor Investors, on a discretionary basis (the "Anchor Investor Portion"), of which one-third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at the Anchor Investor Offer Price. Further, 5% of the QIB Category (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at the Offer Price. Further, not less than 15% of the Offer was available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer was available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Investors (except Anchor Investors) have participated in this Offer through the ASBA process. For details in this regard, specific attention is invited to "Offer Procedure" on page 322 of the Prospectus.

The Offer received 158,377 Applications for 35,019,440 Equity Shares (before technical rejections) resulting in 1.5880 times subscription. As per the bid book, the details of the Applications received in the Offer from various categories are as under: (Before technical rejections)

SI No. Category No. of
Applications
No. of
Equity Shares
Equity
Shares Reserved
No. of
Times Subscribed
A Retail Individual Bidders 158,290 14,704,880 7,718,629 1.9051
B Non Institutional Bidders 63 1,320,960 3,307,984 0.3993
C Qualified Institutional Bidders (Excluding Anchor Investors) 14 12,111,600 4,410,645 2.7460
D Anchor Investors 10 6,882,000 6,615,967 1.0402
Total 158,377 35,019,440 22,053,225 1.5880

Final Demand
A summary of final demand as per BSE & NSE afterthe Bid/Offer Period at different prices is as under:-

Bid
Price
No. of
Equity Shares
% to Total Cumulative
Total
Cumulative %
to Total
180 126,080 0.41 126,080 0.41
181 5,200 0.02 131,280 0.43
182 12,960 0.04 144,240 0.47
183 75,280 0.25 219,520 0.72
184 11,760 0.04 231,280 0.76
185 7,200 0.02 238,480 0.78
186 16,907,200 55.25 17,145,680 56.03
CUTOFF 13,453,360 43.97 30,599,040 100.00
Total 30,599,040 100.00 - -

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE on February 03,2016.

A. Allotment to Retail Individual Investors (After Technical Rejections)

The Basis of Allotment to the Retail Individual Investors, who have Bid at Cut-off Price or at the Offer Price of 7186 per Equity Share was finalized in consultation with BSE. The category has been subscribed to the extent of 1.6886 times. The total number of Equity Shares Allotted in this category is 8,547,884 Equity Shares to 106,848 successful applicants. The category-wise details of the Basis of Allotment are as under:

SI No. Category No. of
Applications Received
% of Total Total No. of
Equity Shares applied
% to Total No. of Equity
Shares Allotted per Applicant
Ratio Total No. of
Equity Shares Allotted*
1 80 148,432 95.41 11,874,560 82.27 80 57:83 8,155,440
2 160 3,306 2.13 528,960 3.66 80 57:83 181,600
3 240 1,162 0.75 278,880 1.93 80 57:83 63,840
4 320 500 0.32 160,000 1.11 80 57:83 27,440
5 400 358 0.23 143,200 0.99 80 57:83 19,680
6 480 388 0.25 186,240 1.29 80 57:83 21,280
7 560 315 0.20 176,400 1.22 80 57:83 17,280
8 640 78 0.05 49,920 0.35 80 46:67 4,320
9 720 27 0.02 19,440 0.13 80 19:27 1,520
10 800 113 0.07 90,400 0.63 80 57:83 6,240
11 880 17 0.01 14,960 0.10 80 12:17 960
12 960 44 0.03 42,240 0.29 80 24:35 2,400
13 1040 835 0.54 868,400 6.02 80 24:35 45,840
44 applicants out of 4,905 allottees from serial no. 2 to 13 have been alloted one additional share each 1:111 44
Total 155,575 100 14,433,600 100 - - 8,547,884

* includes spill over of 829,255 Equity Shares from Nil category

B. Allotment to Non Institutional Investors (After Technical Rejections)

The Basis of Allotmentto the Non-Institutional Investors, who have Bid at the Offer Price of Rs186 per Equity Share, was finalized in consultation with the BSE. This category has been subscribed to the extent of 0.3912 times. The total number of Equity Shares Allotted in this category is 1,294,080 Equity Shares to 62 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample as under)

Category No. of
Applications
Received
% of
Total
Total No.
of Equity
Shares applied
% to
Total
No. of
Equity Shares
Allotted
per Applicant
Ratio Total No.
of Equity
Shares Allotted
1,120 6 9.68 6,720 0.52 1,120 1:1 6,720
5,360 6 9.68 32,160 2.49 5,360 1:1 32,160
10,000 1 1.61 10,000 0.77 10,000 1:1 10,000
21,440 1 1.61 21,440 1.66 21,440 1:1 21,440
53,760 2 3.23 107,520 8.31 53,760 1:1 107,520
126,320 1 1.61 126,320 9.76 126,320 1:1 126,320
500,000 1 1.61 500,000 38.64 500,000 1:1 500,000
*Total 62 100 1,294,080 100 - - 1,294,080

* The total above reflects the data pertaining to all the applications received in the Non-Institutional Investor category. Undersubscribed portion of 2,013,904 equity Shares have been spilled over in the ratio of 50:35 to QIB and Retail Individual Investor category respectively.

C. Allotment to QIBs excluding Anchor Investors

The Basis of Allotment to QIBs who have Bid at the Offer Price of 7186 per Equity Share has been done on a proportionate basis in consultation with the BSE. This category has been subscribed to the extent of 2.1646 times. As per the SEBI Regulations, Mutual Funds were Allocated 5% of the Equity Shares of Net QIB Portion available i.e. 279,764 Equity Shares (including under subscribed portion of 59,232 Equity Shares spilled over from Non Institutional Category) and other QIBs, including Mutual Funds, were Allocated the remaining available 5,315,530 (including undersubscribed portion of 1,125,417 Equity Shares spilled over from Non Institutional Category) on proportionate basis. The total number of Equity Shares allotted in the QIB category is 5,595,294 Equity Shares, which were allotted to 14 successful Applicants. The category-wise details of the Basis of Allotment are asunder:

Category Fls/Banks MFs ICs VCs AIF FN Total
Allotment - 4,489,620 381,077 - - 724,597 5,595,294

D. Allotment to Anchor Investors

The Company and Selling Shareholders in consultation with the BRLMs have Allocated 6,615,967 Equity Shares to 6 Anchor Investors (through 10 Applications) at the Anchor Investor Offer Price of Rs.186 per Equity Share in accordance with the SEBI Regulations. This represents 60 % of the QIB Category.

Category Fls/Banks MFs ICs VCs AIF FN Total
Allotment - 6,615,967 - - - - 6,615,967

The IPO Committee of the Company at its meeting held on February 04,2016, has taken on record, the Basis of Allotment approved by the Designated Stock Exchange, being BSE and Allotted the Equity Shares to various successful Applicants.

The instructions to the Self Certified Syndicate Banks have been issued on February 04,2016 for unblocking of funds. The Equity Shares Allotted to the successful Applicants have been credited on February 05,2016 to their beneficiary accounts subject to validation of the account details with the depositories concerned. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below.

The Company has received listing and trading approval from BSE and NSE and trading in Equity Shares will commence on February 8,2016.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated February 1,2016 filed with the Registrar of Companies, Maharashtra at Pune ("Prospectus")

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Offer, Link Intime India Private Limited at www.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole applicant, Serial number of the Bid-Cum-Application form, number of Equity Shares bid for, name of the Designated Intermediary, place where the bid was submitted and payment details at the address given below:

Link Intime India Private Limited
UNIT: PRECISION CAMSHAFTS LIMITED
Link Intime India Private Limited
C13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai 400 078 Maharashtra, India.
Tel: (+91 22) 61715400; Fax: (+91 22) 2596 0329; Email: pcl.ipo@linkintime.co.in
Investor Grievance Email: pcl.ipo@linkintime.co.in; Website: www.linkintime.co.in; Contact Person: Ms. Shanti Gopalkrishnan
SEBI Registration No.: INR000004058

Place: Mumbai
Date: February 06,2016
For PRECISION CAMSHAFTS LIMITED
On behalf of the Board of Directors
Sd/-
Company Secretary & Compilance Officer

Precision Camshafts IPO Basis of Allotment FAQs

  1. 1. How shares are allotted in Precision Camshafts IPO?

    Check the basis of allotment document above to know about how the shares are allocated in Precision Camshafts IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).
  2. 2. What is Precision Camshafts IPO basis of allotment status?

    The Precision Camshafts IPO basis of allotment (published above) tells you how shares are allocated to you in Precision Camshafts IPO and category wise demand of IPO share.

    Visit the Precision Camshafts IPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is Precision Camshafts IPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in Precision Camshafts IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

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