Ahlada Engineers Limited, the Hyderabad-based SME, engaged in manufacturing residential and commercial steel doors and windows, has come out with an initial public offer (IPO) of 34.05 lakh equity shares of ₹10 each for cash, at a price band of ₹147 to ₹150 per equity share. Of this, 1.71 lakh shares are reserved for the market maker Saffron Equity Advisors.
The issue opens on September 11 and closes on September 18 with Bigshare Services Private Limited acting as the registrar to the issue.
Managing Director of the company Ch. Suresh Mohan Reddy and Manging Director of Saffron Capital Advisors Private Limited, book running lead manager to the issue, Srinivas stated that, of the ₹51 crore expected to be raised through the IPO, ₹20 crore worth equity shares (over 13.33 lakh shares) were reserved for institutional investors.
Talking about the company, the Managing Director stated that it was incorporated in 2005 for manufacturing clean room equipment including doors for pharmaceutical companies. In 2008, they ventured into making commercial doors for speciality sectors like hospitals, diagnostic centres, cinema halls and others. The company started making steel doors for residential purpose from 2013.
The company had been supplying steel doors to Tata Steel Ltd for residential purpose since 2014 as part of the latter’s test marketing, Mr. Mohan Reddy said, adding that they entered into a four-year agreement with TSL in August last year regarding supply of about 12 lakh steel doors for residential purpose.
The agreement had a clause for extension up to 11 months and a renewal based on mutual consent, for another four years after that.
To supply the steel doors to TSL being sold under Tata Pravesh brand, Ahlada Engineers Ltd with K.I. Varaprasad Reddy as its Chairman had started romping up its manufacturing capacity from 1,000 doors a month to 30,000 doors, expanding its facilities in the city.
By the month-end the manufacturing capacity was expected to cross 18,000 a month and has plans to reach the full (30,000 per month) capacity by December-end, Mr. Mohan Reddy stated.
