Jaipur based Gravita (India) is proposing to enter capital markets with a public issue of 4 million equity shares of Rs 10 aggregating at a price to be decided through 100% book building process. The issue will constitute 28.53% of the post issue paid-up capital of the company.

Keynote Corporate Services and Karvy Computershare are helping the company in the fund raising process.

Gravita (India) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The equity shares are proposed to be listed on national stock exchange (NSE) of India and Bombay stock exchange (BSE).

The company proposes to set up new facilities to expand product mix at Jaipur and setting up of new facility at Maharashtra. In addition the company is in the process of investing in a joint venture in Honduras. It also proposes to invest in new locations by setting up manufacturing facilities at Australia, Belarus, Chile and Mexico. Besides the funds would use to increase its working capital and meet with general corporate expenses. The expansion plans would result in improvement of operational efficiencies leading to higher margins and will also increase market penetration and volumes.

Of the total equity float, at least 50% of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIB) out of which 5% will be available for allocation on a proportionate basis only to mutual funds. The remainder will be available for allocation on a proportionate basis to all QIBs, including mutual funds. Further, not less than 15% of the net issue will be available for allocation to non-institutional bidders on a proportionate basis and not less than 35% of the net issue will be available for allocation to retail individual bidders on a proportionate basis.

Gravita (India) is the flagship company of the Gravita Group which was established in the year 1992 and has manufacturing set up at Jaipur. The company is engaged in the business of manufacturing of Lead metal by recycling and smelting process and other Lead products.