Ahmedabad (Gujarat) [India], August 17 (ANI/PNN): Public issue of Gujarat-based Lesha Group company, Rhetan TMT Limited - one of the leading manufacturers of structured steel products including TMT Bars and Round Bars opens for subscription on August 22. The company received approval to launch its public issue on BSE SME Exchange Platform. The company is planning to raise Rs. 56 crore through an initial public offering to fund its expansion plans at Kadi, Gujarat, working capital requirements and general corporate purposes. Aryaman Financial Services Ltd is the lead manager of the issue. The public issue will close on August 25.
The initial public offering will comprise a fresh issue of 80 lakh equity shares of face value Rs 10 each at a price of Rs 70 per share (including a premium of Rs. 60 per equity share) aggregating upto Rs 56 crore. Minimum lot size for the application is 2,000 shares which translates into Rs 1.4 lakh per application.
Issue proceeds will be used to fund the company's expansion plans and working capital requirements. The company has proposed to expand production capacity at its Kadi plant to 45,000 MT per annum from 30,000 MT per annum currently. Promoter group holding in the company currently at 62.62 per cent. Post-issue the promoter group holding in the company will be 37.88 per cent. Shares of the company will be listed on the BSE SME platform.
Commenting on the development, Shalin Shah, Managing Director, Rhetan TMT Ltd said, "Due to strong historical growth we have decided to further expand our manufacturing capacities and hence decided to raise funds for expansion and working capital requirements. With the achievement of operational momentum, we are certain to be able to reach newer heights. We are hopeful that after the proposed public issue, we will be able to execute our growth strategy in a manner that creates exponential value for all stakeholders while consistently delivering quality products."
Incorporated in 1984, Rhetan TMT Ltd is part of Gujarat-based Lesha Group. The diversified business group has business interests in sectors including Oil and Gas, Steel, Infrastructure, Electronic Equipments and Chemical Products. Rhetan TMT Ltd promoted by Shalin Shah and Ashoka Metcast Ltd. Company owns and operates a steel rolling mill with an aggregate installed capacity of 30,000 MT per annum and manufactures TMT Bars and Round Bars which are primarily used in the construction industry. The company's plant is located at Kadi-Kalol Road, Mehsana, Gujarat and is spread across 15,000 square yards. The company has reported CAGR growth of 83 per cent in sales and 167 per cent in EBITDA from FY20 to FY22. Sales in FY22 have increased to Rs 67 crore on a strong EBITDA of Rs. 4.59 crore and Net Profit of Rs. 2.34 crore.
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