The proceeds of the preferential issue will be used to help facilitate the Company with additional funds necessary for acquisition of capital goods and machinery
Sintercom India Limited (Company), a Pune based company, has announced that it has completed the raising of funds on a preferential private placement basis in the form of equity shares and compulsory convertible debentures (CCDs) from one of its promoters Miba Sinter Holding GmbH & CO KG (Miba), for an aggregate amount of approximately INR 222 million, after taking the necessary approvals from the Board, shareholders and other regulatory bodies.
“The additional investment by Miba in our company, emphasises the confidence by our partner in the strength and future growth potential of our company. The funds will help manage the immediate working capital requirements but also look at larger and new business opportunities not only in the domestic markets but also globally,” said Hari Nair, Chairman, Sintercom India Ltd.
The proceeds of the preferential issue will be used to help facilitate the company with additional funds necessary for acquisition of capital goods and machinery, operation and management of the company with approximately Rs 90 million earmarked towards acquisition of capital machinery. The company specialises in manufacturing medium to high-density sintered components for automotive engine, powertrain and exhaust systems. The company also manufactures sensor components that cater to global markets.
Sintercom had entered into a technology agreement with Miba Sinter for various new technologies as may be required in the domestic market. Its clients includes the likes of Fiat, Tata and Bharatbenz. It also supplies to electric vehicle manufacturers.
Nair added, “The increasing importance of India as a manufacturing partner in technologically advanced products is clearly visible from the current market trends. We expect to draw on the experience and expertise of Miba to bring in new technologies and business opportunities to Sintercom resulting in long term growth and value creation for its shareholders.”