Century Metal Recycling Ltd, a leading India based recycler of aluminium and zinc alloys, has filed its draft prospectus with the Securities and Exchange Board of India (SEBI) to float an Initial Public Offering.
The IPO includes fresh shares worth INR 150 crore and a sale of 6.4 million shares by promoters and existing shareholders. According to sources, the total IPO size is estimated at INR 650-700 crore (around $97-104 million).
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Century Metals does not have a listing in Indian stock exchange and is offering the stocks on a public stock exchange for the first time. An IPO and market listing will make the New Delhi-based company the first in its space to go public.
Gauri Shankar Agarwala, the chairman and executive director, has offered to sell 7.93 lakh shares while MD Mohan Agarwal will sell 7.88 lakh shares. Other firms that will be selling shares are Sanjivani Non Ferrous Trading Pvt. Ltd, Grand Metal Recycling Pvt. Ltd and Global Scrap Processors Ltd.
The company will use INR 125 crore of the net fresh proceeds towards repayment or advance payment of certain borrowings availed by it. Century Metals started operating in July 1994 and is currently the largest producer of recycled aluminium in India. The company recycles aluminium scrap and manufactures aluminium alloys and sell the metal in molten form or as solid ingots. It has seven manufacturing facilities with an annual capacity of 2.18 lakh tonnes, contributing about 16% of the estimated installed recycling capacity in India.
Century Metal supplies to the automotive manufacturing sector in India, specifically in the passenger vehicle, two-wheeler and die-casting segments. It supplies to automotive OEMs like Maruti Suzuki India Ltd, Honda Cars India Ltd, Honda Motorcycle and Scooter India Pvt. Ltd and India Yamaha Motor Pvt. Ltd. It also supplies to auto-parts makers such as Rockman Industries Pvt Ltd, Rico Auto Industries Ltd, Minda Industries Ltd and Sunbeam Auto Pvt Ltd.
The company also segregates and sells metal scrap as a part of its manufacturing process. Century Metal reported consolidated net profit of INR 70.54 crore for the nine months ended December 2017 on consolidated revenue of INR 1,815.46 crore. Its consolidated revenue for 2016-17 stood at Rs 2,416.35 crore and its net profit was Rs 71.11 crore.
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