Advanced Sys-Tek files preliminary papers with SEBI to raise funds via IPO
Advanced Sys-Tek has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 98 crore and an offer-for-sale (OFS) of up to 26 lakh equity shares by existing shareholders.
The company proposes to utilise the net proceeds from the fresh issue primarily to fund its expansion plans and working capital requirements. Out of the total IPO proceeds, around Rs 15.96 crore will be used for capital expenditure, including setting up a fabrication facility at its Vadodara plant and constructing a new building with related infrastructure such as HVAC, electrical, fire safety and plumbing systems. It will also invest in solar rooftop installations and new machinery. Further, Rs 50 crore has been earmarked towards long-term working capital requirements, while the remaining funds will be used for general corporate purposes.
Inga Ventures and Sowilo Capital Advisors LLP are the book-running lead managers to the issue, while MUFG Intime India is the registrar to the offer. Shares of the company are proposed to be listed on the BSE and the NSE.
Advanced Sys-Tek is an industrial automation solutions provider catering to petroleum, oil and lubricants (POL) and petrochemical storage and distribution terminals, including fuel farms. It also provides liquid and gas fiscal metering systems (metering skids) and automation solutions for LPG bottling plants.
