Century Metal Recycling has filed draft papers with markets regulator Securities and Exchange Board of India for an initial public offering (IPO). The offer comprises of a fresh issue of equity shares aggregating up to Rs 150 crore and an offer for sale of up to 6,402,650 equity shares of Century Metal Recycling by the promoters including Gauri Shankar Agarwala (up to 793,243 equity shares), Mohan Agarwal (up to 788,955 shares). The public issue will see sale of up to 2,550,386 equity shares by Global Scrap Processors, up to 527,484 shares by Sanjivani Non Ferrous Trading Private Limited and up to 573,520 by Grand Metal Recycling private Limited, according to draft red herring prospectus (DRHP).
The company intends to utilise the net proceeds from the fresh issue towards the prepayment or repayment of all or a portion of certain borrowings availed by the company and general corporate purposes. The equity shares offered through the red herring prospectus are proposed to be listed on the stock exchanges and the company has received 'in-principle' approval from BSE and NSE for the listing. ICICI Securities and Edelweiss Financial Services were the book running lead managers to the issue. Century Metal Recycling is a producer of aluminium based die cast alloys and zinc alloys in India. It has an annual production capacity of over 218,000 MT for aluminium alloys and 8,000 MT for zinc alloys.