Table Of ContentRed Herring Prospectus
Dated: March 3, 2018
Please read Section 32 of the Companies Act, 2013
Book Building Issue
BENARA BEARINGS AND PISTONS LIMITED
Our Company was originally incorporated as “Benara Automotives Private Limited” at Kanpur, as a Private Limited company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated November 26,
1990 bearing registration number 20-12518 issued by the Registrar of Companies, Uttar Pradesh, Kanpur. Subsequently, pursuant to a special resolution passed on February 20, 1993, our Company was converted into a public limited
company following which our name was changed to “PHB Engineerings Limited” and a fresh Certificate of Incorporation dated April 27, 1993 consequent upon conversion of our Company from private limited to public limited and
change of name was issued to our Company by the Registrar of Companies, Uttar Pradesh, Kanpur. Further, pursuant to a special resolution dated July 29, 1993, the name of our Company was changed to “PHB Engineering Limited”
from “PHB Engineerings Limited” and a fresh Certificate of Incorporation dated October 6, 1993 consequent upon the change of name was issued by the Registrar of Companies, Uttar Pradesh, Kanpur. Later, pursuant to a special
resolution dated March 15, 2002, the name of our Company was changed to “Benara Bearings and Pistons Limited” from PHB Engineering Limited and a fresh Certificate of Incorporation dated March 28, 2002 consequent upon the
change of name was issued to our Company by the Assistant Registrar of Companies, Uttar Pradesh, Kanpur. The Corporate Identification Number of our Company is U50300UP1990PLC012518. For details of incorporation, change
of registered office of our Company, please refer chapter titled “Our History and Certain other Corporate Matters” beginning on page 195 of this Red Herring Prospectus.
Registered Office: A-3 & 4, Site B, Industrial Area, Sikandra, Agra, Uttar Pradesh, 282007, India.
Tel. No./Fax No.: +91 562 2970158
Contact Person: Artee Sahu, Company Secretary and Compliance Officer
Email: [email protected]; Website: www.benara-phb.com
PROMOTERS OF OUR COMPANY: PANNA LAL JAIN & VIVEK BENARA
THE ISSUE
INITIAL PUBLIC OFFER CONSISTING OF FRESH ISSUE OF UPTO 53,16,000* EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FULLY PAID FOR CASH AT A
PRICE OF RS. [] PER EQUITY SHARE (THE “ISSUE PRICE”) (INCLUDING A SHARE PREMIUM OF RS. [] PER EQUITY SHARE) AGGREGATING UP TO RS. []**
LAKHS (THE “ISSUE”), OF WHICH 2,72,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. []/- PER EQUITY SHARE,
AGGREGATING RS. [] LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY THE MARKET MAKER TO THE ISSUE (THE “MARKET MAKER RESERVATION
PORTION”) AND 76,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT PRICE OF RS. [] PER EQUITY SHARE AGGREGATING RS. [] LAKHS WILL BE RESERVED
FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE “EMPLOYEES RESERVATION PORTION”). THE ISSUE LESS MARKET MAKER RESERVATION PORTION AND
EMPLOYEES RESERVATION PORTION I.E. ISSUE OF UPTO 49,68,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. []/- PER
EQUITY SHARE, AGGREGATING RS. [] LAKHS IS HEREINAFTER REFERED TO AS THE “NET ISSUE”. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE []% AND
[]% RESPECTIVELY OF THE FULLY DILUTED POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH. THE PRICE BAND WILL BE DECIDED BY OUR COMPANY IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGER
(“BRLM”) AND WILL BE ADVERTISED ALONG WITH LOT SIZE IN ALL EDITIONS OF ENGLISH NEWSPAPER BUSINESS STANDARD, ALL EDITIONS OF HINDI NEWSPAPER BUSINESS
STANDARD AND REQGIONAL HINDI NEWSPAPER SWARAJYA TIMES, EACH WITH WIDE CIRCULATION, HINDI BEING THE REGIONAL LANGUAGE OF THE PLACE WHERE REGISTERED
OFFICE OF THE COMPANY IS SITUATED AT LEAST 5 (FIVE) WORKING DAYS PRIOR TO THE BID/ ISSUE OPENING DATE WITH THE RELEVANT FINANCIAL RATIOS CALCULATED AT THE
FLOOR PRICE AND THE CAP PRICE AND SHALL BE MADE AVAILABLE TO THE SME PLATFORM OF BSE LIMITED (“BSE SME”, REFERRED TO AS THE “STOCK EXCHANGE”) FOR THE
PURPOSE OF UPLOADING ON THEIR WEBSITE. In case of any revisions in the Price Band, the Bid/Issue Period will be extended by at least three additional Working Days after such revision of
the Price Band, subject to the Bid/Issue Period not exceeding 10 Working Days. Any revision in the Price Band and the revised Bid/Issue Period, if applicable, will be widely disseminated by
notification to the Stock Exchanges, by issuing a press release, and also by indicating the change on the website of the BRLM and the terminals of the Syndicate Members (defined herein below).
In terms of SEBI Circular No. CIR/CFD/POLICYCELL/11/2015, all potential investors shall participate in the Issue only through an Application Supported by Blocked Amount (“ASBA”)
process providing details about the bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) for the same. For details in this regard, specific attention is invited
to the chapter titled “Issue Procedure” beginning on page 367 of this Red Herring Prospectus. A copy of Red Herring Prospectus has been delivered and a copy of the Prospectus will be delivered for
registration to the Registrar of Companies as required under Section 32 and 26 of the Companies Act, 2013, respectively.
In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”) the Issue is being made for at least 25% of the post-Issue paid-up Equity Share capital
of our Company. THE ISSUE IS BEING MADE IN ACCORDANCE WITH CHAPTER XB OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2009, AS AMENDED FROM TIME TO TIME (“SEBI (ICDR) REGULATIONS”). For further details please refer the section titled ‘Issue
Information’ beginning on page 356 of this Red Herring Prospectus.
RISKS IN RELATION TO FIRST ISSUE
This being the first public Issue of our Company, there has been no formal market for the Equity Shares. The face value of the Equity Shares is Rs. 10 each. The Floor Price is [] times the face value
and the Cap Price is [] times the face value. The Issue Price (determined and justified by our Company in consultation with the BRLM as stated in “Basis for Issue Price” on page 129 should not be
taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active or sustained trading in the Equity Shares or regarding
the price at which the Equity Shares will be traded after listing.
GENERAL RISKS
Investments in Equity and Equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their entire investment.
Investors are advised to read the risk factors carefully before taking an investment decision in the Issue. For taking an investment decision, investors must rely on their own examination of our Company
and the Issue including the risks involved. The Equity Shares issued in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI
guarantee the accuracy or adequacy of the Red Herring Prospectus. Specific attention of the investors is invited to the section “Risk Factors” beginning on page 21 of this Red Herring Prospectus.
ISSUER’S ABSOLUTE RESPONSIBILITY
Our Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Red Herring Prospectus contains all information with regard to our Company and the Issue, which is
material in the context of the Issue; that the information contained in this Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect; that the opinions
and intentions expressed herein are honestly held; and that there are no other facts, the omission of which makes this Red Herring Prospectus as a whole or any of such information or the expression of
any such opinions or intentions misleading in any material respect.
LISTING
The Equity Shares of our Company issued through this Red Herring Prospectus are proposed to be listed on the SME Platform of BSE Limited (‘BSE SME’), in terms of the Chapter XB of the SEBI
(ICDR) Regulations, 2009 as amended from time to time. Our Company has received an In-Principal approval letter dated February 22, 2018 from BSE Limited for using its name in the Issue document
for listing of our shares on the SME Platform of BSE Limited. For the purpose of this Issue, SME Platform of the BSE Limited shall be the Designated Stock Exchange.
BOOK RUNNING LEAD MANAGER REGISTRAR TO THE ISSUE
PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED
BIGSHARE SERVICES PRIVATE LIMITED
406-408, Keshva Premises, Behind Family Court,
1st Floor, Bharat Tin Works Building,
Bandra Kurla Complex, Bandra (East),
Opp. Vasant Oasis, Makwana Road, Marol, Andheri East,
Mumbai – 400051, Maharashtra, India
Mumbai-400059
Tel: +91-22 6194 6700
Tel: +91 22 6263 8200
Fax: +91-22 2659 8690
Fax: +91 22 6263 8299
Website:www.pantomathgroup.com
Email: [email protected]
Email: [email protected]
Website: www.bigshareonline.com
Investor Grievance Id: [email protected]
Contact Person: Srinivas Dornala
Contact Person: Unmesh Zagade
SEBI Registration No: INR000001385
SEBI Registration No:INM000012110
ISSUE PROGRAMME
ISSUE OPENS ON: TUESDAY, MARCH 20, 2018 ISSUE CLOSES ON: THURSDAY, MARCH 22, 2018
*Number of shares may need to be adjusted for lot size upon determination of issue price
**Subject to finalisation of basis of Allotment
INDEX
SECTION I – GENERAL ............................................................................................................................................................... 3
DEFINITION AND ABBREVIATION ...................................................................................................................................... 3
PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA ............................................................................ 18
FORWARD LOOKING STATEMENTS.................................................................................................................................. 20
SECTION II – RISK FACTORS ................................................................................................................................................. 21
SECTION III – INTRODUCTION .............................................................................................................................................. 50
SUMMARY OF OUR INDUSTRY .......................................................................................................................................... 50
SUMMARY OF OUR BUSINESS ........................................................................................................................................... 60
SUMMARY OF FINANCIAL INFORMATION ...................................................................................................................... 69
THE ISSUE ............................................................................................................................................................................... 79
GENERAL INFORMATION .................................................................................................................................................... 81
CAPITAL STRUCTURE .......................................................................................................................................................... 93
OBJECTS OF THE ISSUE ...................................................................................................................................................... 118
BASIS FOR ISSUE PRICE ..................................................................................................................................................... 129
STATEMENT OF POSSIBLE TAX BENEFITS .................................................................................................................... 133
SECTION IV – ABOUT THE COMPANY .............................................................................................................................. 136
OUR INDUSTRY .................................................................................................................................................................... 136
OUR BUSINESS ..................................................................................................................................................................... 163
KEY INDUSTRY REGULATIONS AND POLICIES ........................................................................................................... 185
OUR HISTORY AND CERTAIN OTHER CORPORATE MATTERS ................................................................................. 195
OUR MANAGEMENT ........................................................................................................................................................... 202
OUR PROMOTERS AND PROMOTER GROUP ................................................................................................................. 221
OUR GROUP COMPANIES .................................................................................................................................................. 227
RELATED PARTY TRANSACTIONS .................................................................................................................................. 236
DIVIDEND POLICY .............................................................................................................................................................. 237
SECTION V –FINANCIAL INFORMATION ......................................................................................................................... 238
FINANCIAL STATEMENTS AS RESTATED ...................................................................................................................... 238
CONSOLIDATED FINANCIAL STATEMENT AS RESTATED ........................................................................................ 279
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 308
FINANCIAL INDEBTEDNESS ............................................................................................................................................. 324
SECTION VI – LEGAL AND OTHER INFORMATION ...................................................................................................... 327
OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS .............................................................................. 327
GOVERNMENT AND OTHER STATUTORY APPROVALS ............................................................................................. 337
OTHER REGULATORY AND STATUTORY DISCLOSURES .......................................................................................... 340
SECTION VII – ISSUE RELATED INFORMATION ............................................................................................................ 356
TERMS OF THE ISSUE ......................................................................................................................................................... 356
ISSUE STRUCUTRE .............................................................................................................................................................. 364
ISSUE PROCEDURE ............................................................................................................................................................. 367
RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES ........................................................................ 424
SECTION VIII – MAIN PROVISIONS OF ARTICLES OF ASSOCIATION ..................................................................... 428
SECTION IX – OTHER INFORMATION ............................................................................................................................... 474
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION ................................................................................ 474
DECLARATION BY THE COMPANY ................................................................................................................................. 476
Page 1 of 480
The Equity Shares have not been and will not be registered under the U.S Securities Act of 1933, as
amended (“U.S. Securities Act”) or any state securities laws in the United States of America and may not
be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons (as defined
in Regulation S), except pursuant to exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities laws. Accordingly the Equity Shares are being offered and sold only
outside the United States in offshore transaction in reliance on Regulation S under the U.S Securities Act
and the applicable laws of the jurisdiction where those offers and sale occur.
The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other
jurisdiction outside India and may not be offered or sold, and application may not be made by persons in
any such jurisdiction, except in accordance with the applicable laws of such jurisdiction.
Page 2 of 480
SECTION I – GENERAL
DEFINITION AND ABBREVIATION
In this Red Herring Prospectus, unless the context otherwise requires, the terms and abbreviations
stated hereunder shall have the meanings as assigned therewith.
Term Description
“Benara Bearings and Pistons Benara Bearings and Pistons Limited, a Public Limited
Limited” or “BBPL” or “the Company incorporated under the Companies Act, 1956.
Company” ,or “our Company” or
“we”, “us”, “our”, or “Issuer” or the
“Issuer Company”
AOA or Articles or Articles of The Articles of Association of our Company, as amended
Association from time to time.
Audit Committee The committee of the Board of Directors constituted as the
Company’s Audit Committee in accordance with Section 177
of the Companies Act, 2013.
Auditor or Statutory Auditor The statutory auditor of our Company, being Agrawal Jain &
Gupta, Chartered Accountants
Bankers to the Company Such banks which are disclosed as bankers to our Company in
the chapter titled “General Information” on page 81 of this
Red Herring Prospectus.
Board of Directors/ the Board / our The Board of Directors of our Company, as duly constituted
Board from time to time, including Committee(s) thereof.
Company Secretary and Compliance The Company Secretary & Compliance Officer of our
Officer Company being Artee Sahu.
Director(s) Director(s) of our Company , unless otherwise specified
Equity Shareholders Persons/ Entities holding Equity Shares of our Company
Equity Shares Equity Shares of our Company of face value of Rs. 10 each
fully paid up.
Group Companies Such Companies as are included in the chapter titled ‘Our
Group Companies’ beginning on page 227 of this Red Herring
Prospectus
ISIN International Securities Identification Number. In this case
being INE495Z01011
MOA / Memorandum / The Memorandum of Association of our Company, as
Memorandum of Association amended from time to time.
Peer Reviewed Auditor Independent Auditor having a valid Peer Review Certificate in
our case being Agrawal Jain & Gupta, Chartered Accountants.
Promoter Group Includes such persons and entities constituting our promoter
group in terms of Regulation 2(1)(zb) of the SEBI (ICDR)
Regulations and as enlisted in the chapter titled “Our
Promoter and Promoter Group” beginning on page 221 of this
Red Herring Prospectus.
Promoter, Promoters or our Promoters of our Company being PannaLal Jain and Vivek
Promoters Benara
Registered Office A-3 & 4, Site B, Industrial Area, Sikandra, Agra – 282007
Roc / Registrar of Companies Registrar of Companies, Uttar Pradesh, Kanpurat
37/17,WestcotttBuidling,The Mall,Kanpur-208001
Shareholders Shareholders of our Company
you, your or yours Prospective investors in this Issue
Page 3 of 480
ISSUE RELATED TERMS
Term Description
Acknowledgement Slip The slip or document issued by the Designated Intermediary
to a Bidder as proof of registration of the Bid
Allotment/ Allot/ Allotted Issue and allotment of Equity Shares of our Company
pursuant to the Issue of the Equity Shares to successful
Bidders
Allottee(s) Successful Bidders(s) to whom Equity Shares have been
allotted/transferred.
Allotment Advice Note or advice or intimation of Allotment sent to the
successful Bidders who have been or are to be Allotted the
Equity Shares after the Basis of Allotment has been approved
by the Designated Stock Exchange.
ASBA / Application Supported by An application, whether physical or electronic, used by
Blocked Amount Bidders, to make a Bid authorising an SCSB to block the Bid
Amount in the ASBA Account
ASBA Account An account maintained with an SCSB and specified in the Bid
cum Application Form submitted by Bidders for blocking the
Bid Amount mentioned in the Bid cum Application Form
ASBA form An application form, whether physical or electronic, used by
Bidders which will be considered as the application for
Allotment in terms of this Red Herring Prospectus.
ASBA Application Location(s) / Locations at which ASBA Applications can be uploaded by
Specified Cities the SCSBs, namely Mumbai, New Delhi, Chennai, Kolkata,
and Agra.
ASBA Bidder Any Bidder
ASBA form/ Bid Cum Application An application form, whether physical or electronic, used by
Bidders which will be considered as the application for
Allotment in terms of this Red Herring Prospectus
Banker(s) to the Issue/ Public Issue The banks which are clearing members and registered with
Bank(s) SEBI as Banker to an Issue with whom the Public Issue
Account will be opened and in this case being ICICI Bank
Limited.
Basis of Allotment The basis on which Equity Shares will be Allotted to the
successful Bidders under the Issue and which is described
under chapter titled “Issue Procedure” beginning on page 367
of this Red Herring Prospectus.
Bid An indication to make an issue during the Bid/Issue Period
Bidder, pursuant to submission of the Bid cum Application
Form, to subscribe to or purchase the Equity Shares at a price
within the Price Band, including all revisions and
modifications thereto
Bid Amount The highest value of optional Bids indicated in the Bid cum
Application Form and in the case of Retail Individual Bidders
Bidding at Cut Off Price, the Cap Price multiplied by the
number of Equity Shares Bid for by such Retail Individual
Bidder and mentioned in the Bid cum Application Form and
payable by the Retail Individual Bidder or blocked in the
ASBA Account upon submission of the Bid in the Issue.
Eligible Employees applying in the Employee Reservation
Page 4 of 480
Term Description
Portion the Bid Amount shall be Cap Price multiplied by the
number of Equity Shares Bid for by such Eligible Employees
mentioned in the Bid cum Application Form net of Employee
Discount
Bid cum Application form The form used by a Bidder, to make a Bid and which will be
considered as the application for Allotment in terms of the
Red Herring Prospectus
Bid Cum Application Collecting 1. a SCSB with whom the bank account to be blocked, is
Intermediaries maintained
2. a syndicate member (or sub-syndicate member) If any
3. a stock broker registered with a recognized stock
exchange (and whose name is mentioned on the website of
the stock exchange as eligible for this activity)(‘broker’) if
any
4. a depository participant (‘DP’) (whose name is mentioned
on the website of the stock exchange as eligible for this
activity)
5. a registrar to an issue and share transfer agent (‘RTA’)
(whose name is mentioned on the website of the stock
exchange as eligible for this activity)
Bid Lot [●] Equity shares and in multiples of [●] Equity Shares
thereafter
Bid/ Issue Closing Date The date after which the Syndicate, the Designated Branches
and the Registered Brokers will not accept any Bids, which
shall be notified in all editions of English Newspaper Business
Standard, all editions of Hindi Newspaper Business Standard
and widely circulated Swarajya Times Hindi Newspaper, as
Hindi being the regional language of Agra, where our
registered office is situated, and in case of any revision, the
extended Bid/Issue Opening Date also to be notified on the
website and terminals of the Syndicate and SCSBs, as
required under the SEBI ICDR Regulations.
Bid/ Issue Opening Date The date on which the Syndicate, the Designated Branches
and the Registered Brokers shall start accepting Bids, which
shall be notified in all editions of English Newspaper Business
Standard, all editions of Hindi Newspaper Business Standard
and widely circulated Swarajya Times Hindi Newspaper, as
Hindi being the regional language of Agra, where our
registered office is situated, each with wide circulation, and in
case of any revision, the extended Bid/Issue Opening Date
also to be notified on the website and terminals of the
Syndicate and SCSBs, as required under the SEBI ICDR
Regulations.
Bid/ Issue Period The period between the Bid/Issue Opening Date and the
Bid/Issue Closing Date, as the case may be (in either case
inclusive of such date and the Bid/Issue Opening date) during
which Bidders can submit their Bids, including any revisions
thereof.
Bidder Any prospective investor who makes a Bid pursuant to the
terms of the Red Herring Prospectus and unless otherwise
stated or implied, includes an ASBA Bidder.
Page 5 of 480
Term Description
Bidding/collecting Centre Centres at which the Designated Intermediaries shall accept
the ASBA Forms, i.e., Designated SCSB Branch for SCSBs,
Specified Locations for Syndicate, Broker Centres for
Registered Brokers, Designated RTA Locations for RTAs and
Designated CDP Locations for CDPs
Book Building Process Book Building Process, as provided in Schedule XI of the
SEBI ICDR Regulations, in terms of which the Issue is being
made
Book Running Lead Managers or The Book Running Lead Manager to the Issue namely
BRLM Pantomath capital Advisors Private Limited
Broker Centres Broker centres notified by the Stock Exchanges, where the
Bidders can submit the Bid cum application forms to a
Registered Broker. The details of such broker centres, along
with the names and contact details of the Registered Brokers,
are available on the website of BSE Limited.
BSE BSE Limited
CAN or Confirmation of Allocation The note or advice or intimation sent to each successful
Note Bidder indicating the Equity Shares which will be Allotted/
transferred, after approval of Basis of Allotment by the
Designated Stock Exchange.
Cap Price The higher end of the Price Band, above which the Issue Price
will not be finalised and above which no Bids (or a revision
thereof) will be accepted
ClientID Client Identification Number maintained with one of the
Depositories in relation to demat account.
Cut-off Price Issue Price, which shall be any price within the Price Band
finalised by our Company in consultation with the BRLM.
Only Retail Individual Bidders are entitled to Bid at the Cut-
off Price. QIBs and Non Institutional Bidders are not entitled
to Bid at the Cut-off Price.
Collecting Depository Participant or A depository participant as defined under the Depositories
CDP Act, 1996, registered with SEBI and who is eligible to procure
Applications at the Designated CDP Locations in terms of
circular no. CIR/CFD/POLICYCELL/11/2015 dated
November 10, 2015 issued by SEBI
Controlling Branch/Designated Such branch of the SCSBs which coordinate Applications
Branch under this Issue by the ASBA Applicants with the Registrar to
the Issue and the Stock Exchanges and a list of which is
available at http://www.sebi.gov.in or at such other website as
may be prescribed by SEBI from time to time
Demographic Details The demographic details of the Bidders/Applicants such as
their address, PAN, occupation and bank account details
Depositories Depositories registered with SEBI under the Securities and
Exchange Board of India (Depositories and Participants)
Regulations, 1996, as amended from time to time, being
NSDL and CDSL
Depository Participant A Depository Participant as defined under the Depositories
Act, 1996
Designated Date The date on which the Collection Banks transfer funds from
the public issue accounts, and the SCSBs issue instructions for
transfer of funds from the ASBA Accounts, to the Public Issue
Page 6 of 480
Term Description
Account or the Refund Account, as appropriate, in terms of
this Red Herring Prospectus following which the Board of
Directors may Allot Equity Shares to successful Bidders in the
Fresh Issue may give delivery instructions for the transfer of
the respective Offered Shares.
Designated Intermediary(ies) Syndicate, Sub-Syndicate Members/agents, SCSBs,
Registered Brokers, CDPs and RTAs, who are authorized to
collect ASBA Forms from the Bidders, in relation to the Issue
Designated RTA Locations Such centres of the RTAs where Bidder can submit the Bid
cum Application Forms. The details of such Designated RTA
Locations, along with the names and contact details of the
RTAs are available on the respective websites of the Stock
Exchange (www.bseindia.com) and updated from time to time
Designated Stock Exchange SME Platform of BSE Limited
Designated CDP Locations Such centres of the CDPs where Bidders can submit the Bid
Cum Application Forms. The details of such Designated CDP
Locations, along with names and contact details of the
Collecting Depository Participants eligible to accept Bid cum
Application Forms are available on the website of the Stock
Exchange (www.bseindia.com) and updated from time to time
Draft Red Herring Prospectus or This Draft Red Herring Prospectus dated February 2, 2018
DRHP issued in accordance with the SEBI ICDR Regulations, which
does not contain complete particulars of the price at which the
Equity Shares will be Allotted and the size of the Issue
Eligible Employees All or any of the following:
(a) permanent and full time employee of our Company,
(excluding such employees who are not eligible to invest in
the Issue under applicable laws, rules, regulations and
guidelines and the Promoters and their immediate relatives) as
of the date of filing of the Red Herring Prospectus with the
RoC and who continues to be an employee of our Company,
as the case may be, until the submission of the Bid cum
Application Form and is based, working in India as on the
date of submission of the Bid cum Application Form; and (b)
a Director of our Company, whether a whole time Director or
otherwise, (excluding such Directors not eligible to invest in
the Issue under applicable laws, rules, regulations and
guidelines and the Promoters and their immediate relatives) as
of the date of filing the Red Herring Prospectus with the RoC
and who continues to be a Director of our Company until the
submission of the Bid cum Application Form and is based in
India as on the date of submission of the Bid cum Application
Form.
(c) An employee of our Company, who is recruited against a
regular vacancy but is on probation as on the date of
submission of the Bid cum Application Form will also be
deemed a permanent and a full time employee. The maximum
Bid Amount under the Employee Reservation Portion by an
Eligible Employee shall not exceed Rs. 5,00,000.
Employee Reservation Portion Reservation of 72,000 Equity Shares, available for allocation
Page 7 of 480
Term Description
to Eligible Employees on a proportionate basis aggregating
Upto Rs. [●]
First/sole Bidder Bidder whose name shall be mentioned in the Bid cum
Application Form or the Revision Form and in case of joint
Bids, whose name shall also appear as the first holder of the
beneficiary account held in joint names
Floor Price The lower end of the Price Band, subject to any revision
thereto, at or above which the Issue Price will be finalised and
below which no Bids will be accepted
FII/ Foreign Institutional Investors Foreign Institutional Investor (as defined under SEBI (Foreign
Institutional Investors) Regulations, 1995, as amended)
registered with SEBI under applicable laws in India.
General Information Document/GID The General Information Document for investing in public
issues prepared and issued in accordance with the circular
(CIR/CFD/DIL/12/2013) dated October 23, 2013, notified by
SEBI and included in “Issue Procedure” on page 367 of this
Red Herring Prospectus
Issue The Initial Public Issue of 53,16,000 Equity Shares of face
value of Rs.10 each for cash at a price of Rs. [●] each,
aggregating up to Rs.[●] comprising the Fresh Issue
Issue Agreement The agreement dated December 27, 2017 between our
Company and the BRLM, pursuant to which certain
arrangements are agreed to in relation to the Issue
Issue Price The final price at which Equity Shares will be Allotted in
terms of the Red Herring Prospectus. The Issue Price will be
decided by our Company in consultation with the BRLM on
the Pricing Date in accordance with the Book-Building
Process and the Red Herring Prospectus
Issue Proceeds The proceeds of the Issue that is available to our Company.
For further information about use of Issue Proceeds, see
“Objects of the Issue” on page 118 of this Red Herring
Prospectus
Listing Agreement The Equity Listing Agreement to be signed between our
Company and the SME Platform of BSE Limited.
Market Making Agreement Market Making Agreement dated February 7, 2018 between
our Company, Book Running Lead Manager and Market
Maker.
Market Maker Market Maker appointed by our Company from time to time,
in this case being Pantomath Stock Brokers Private Limited
who has agreed to receive or deliver the specified securities in
the market making process for a period of three years from the
date of listing of our Equity Shares or for any other period as
may be notified by SEBI from time to time
Market Maker Reservation Portion The Reserved Portion of 2,72,000 Equity Shares of face value
of Rs. 10 each fully paid for cash at a price of Rs [●] per
Equity Share aggregating Rs. [●] for the Market Maker in this
Issue.
Mutual Fund(s) A mutual fund registered with SEBI under the SEBI (Mutual
Funds) Regulations, 1996, as amended from time to time
Net Issue The Issue (excluding the Market Maker Reservation Portion
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Term Description
and Employee Reservation) of 49,68,000 Equity Shares of
face value of Rs. 10 each fully paid for cash at a price of Rs
[●] per Equity Share aggregating Rs. [●] by our Company
Net Proceeds Proceeds of the Fresh Issue less our Company’s share of the
Issue expenses. For further information about use of the Issue
Proceeds and the Issue expenses, see “Objects of the Issue” on
page 118 of Red Herring Prospectus.
NIF National Investment Fund set up by resolution F. No.
2/3/2005-DD-II dated November 23, 2005 of Government of
India published in the Gazette of India
Non Institutional Bidders All Bidders, including Category III FPIs that are not QIBs or
Retail Individual Investors, who have apply for Equity Shares
for an amount of more than Rs. 2,00,000 but not including
NRIs other than Eligible NRIs
Non-Resident A person resident outside India, as defined under FEMA and
includes FIIs and FPIs
OCB/ Overseas Corporate Body A company, partnership, society or other corporate body
owned directly or indirectly to the extent of at least 60% by
NRIs, including overseas trusts in which not less than 60% of
beneficial interest is irrevocably held by NRIs directly or
indirectly as defined under the Foreign Exchange
Management (Deposit) Regulations, 2000, as amended from
time to time. OCBs are not allowed to invest in this Issue
Other Investors Investors other than Retail Individual Investors.These include
individual bidders/applicants other than retail individual
investors and other investors including corporate bodies or
institutions irrespective of the number of specified securities
applied for.
Person/ Persons Any individual, sole proprietorship, unincorporated
association, unincorporated organization, body corporate,
corporation, company, partnership, limited liability company,
joint venture, or trust or any other entity or organization
validly constituted and/or incorporated in the jurisdiction in
which it exists and operates, as the context requires
Price Band Price band of a minimum price of Rs. [●] per Equity Share
(Floor Price) and the maximum price of Rs. [●] per Equity
Share (Cap Price) including revisions thereof.
The Price Band and the minimum Bid Lot size for the Issue
will be decided by our Company in consultation with the
BRLM and will be advertised at least five Working Days prior
to the Bid/ Issue Opening Date, in all editions of English
Newspaper Business Standard, all editions of Hindi
Newspaper Business Standard and widely circulated Swarajya
Times Hindi Newspaper, as Hindi being the regional language
of Agra, where our registered office is situated, each with
wide circulation
Pricing date The date on which our Company in consultation with the
BRLM, will finalise the Issue Price
Prospectus The Prospectus to be filed with the RoC on or after the Pricing
Date in accordance with Section 32 of the Companies Act,
2013, and the SEBI (ICDR) Regulations containing, inter alia,
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Description:material in the context of the Issue; that the information contained in this Red Our manufacturing facilities are located at Agra, Uttar Pradesh. has launched a phased manufacturing programme (PMP) aimed at adding other places of work, and provision of adequate training and supervision.