Pioneer Fil-Med Moves Ahead With ₹500 Crore IPO Plan

Railway components maker Pioneer Fil-Med Ltd has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise ₹500 crore through an initial public offering (IPO). The proposed IPO includes:

• Fresh issue of equity shares worth ₹250 crore

• Offer for Sale (OFS) of shares worth ₹250 crore

The details were disclosed in the draft red herring prospectus (DRHP) filed on Sunday. The OFS will see promoter Pioneer Facor IT Infradevelopers and promoter group firm Aztech India each selling shares worth up to ₹125 crore.

Use Of IPO Proceeds

The company plans to use the proceeds from the fresh issue to fund new facilities in Rajasthan. These include:

• A gearbox manufacturing unit

• A wind generator components facility

Both plants will be set up at Salarpur in Bhiwadi. A part of the funds will also be used for general corporate purposes. The IPO will allow Pioneer Fil-Med to list its shares on stock exchanges. The company said this would help improve visibility and create a public market for its equity.

Pre-IPO Placement Option On Table

The company may raise up to ₹50 crore through a pre-IPO placement. If it goes ahead with this plan, the size of the fresh issue will be reduced by the same amount. No timeline for the IPO has been disclosed yet.

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Business Built On Railway Supply Chain

Pioneer Fil-Med started operations in 1997 with filters for railway and automotive use. Over the years, it has widened its product range. The current portfolio includes:

• Traction motors and alternators

• Brake discs and gangways

• Stators and rotors for locomotives

• Platform screen doors for metro systems

• Wind generators and related services

Nuvama Wealth Management and Equirus Capital have been appointed as the book-running lead managers for the issue.

Sources:

The Hindu Business Line

Business Standard