Cannes Technology IPO: This year is very good for investors trying their luck by betting on Initial Public Offerings (IPOs). Many companies, from small to big, are going to launch IPO this year. In these companies, Cannes Technology, a company in the electronics systems and design manufacturing services sector, has also joined.
Documents submitted to SEBI: This company has filed documents with the market regulator SEBI to raise money from the IPO. As per the draft red herring draft (DRHP), the IPO will involve issue of fresh equity shares worth Rs 650 crore and open sale offer (OFS) of 7.2 crore equity shares by one innovator and an existing shareholder.
Under the OFS, promoter Ramesh Kunhikannan will offer for sale of 37 lakh equity shares and shareholder Frenzy Firoz 35 lakh equity shares. Shares up to Rs 1.5 crore in the issue will be reserved for eligible employees.
What will happen to the amount: Of the proceeds from the IPO, about Rs 130 crore will be used to repay debt and Rs 98.93 crore will be used for capital expenditure for manufacturing centers in Mysore and Manesar. At the same time, Rs 140.30 crore will be invested in the company’s subsidiary unit Cannes Electronics Manufacturing Private Limited.