The initial public offer (IPO) comprises fresh issuance of shares worth Rs 450 crore, besides an offer for sale of up to 30 lakh equity stocks by existing shareholder Kanubhai M Patel Trust, as per the draft papers.
The company may consider a pre-IPO placement for an aggregate amount not exceeding Rs 100 crore.
“If the Pre-IPO Placement is undertaken, the amount raised from the Pre-IPO placement will be reduced from the fresh issue,” the draft prospectus noted.
According to merchant banking sources, the IPO is expected to fetch Rs 550 crore.
Proceeds of the issue will be utilised towards investment in the company’s projects, to meet working capital requirements and for other general corporate purposes.
Edelweiss Financial Services, Axis Capital and HDFC Bank will manage the company’s public issue.
The Ahmedabad-based firm has more than two decades of execution experience, having completed 67 EPC (engineering, procurement, construction) projects.
In May 2018, Montecarlo had approached Sebi with draft prospectus seeking its approval to raise funds through initial share-sale and in August last year, secured the market regulator’s nod to float the public issue.
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However, the company did not launch the IPO.
As per Sebi’s regulations, a firm gets one year to hit the primary market after receiving approval from the markets regulator.
In case a firm fails to do so during this period, it has to refile the prospectus with Sebi seeking fresh clearance.