Pune, India – Leading automotive sintered components manufacturers, Sintercom India Limited, raised funds for an aggregate amount of approximately INR 22.2 crore from one of its promoters Miba Sinter Holding GmbH & CO KG, a sintered technology pioneer and a part of the global Miba group. The raise by the Pune based company was based on a preferential private placement after obtaining necessary approvals from the board, shareholders, and other regulatory bodies, in the form of equity shares and compulsory convertible debentures (CCDs) from the promoters.
The proceeds of the preferential issue will be used to provide the company with additional funds needed for the acquisition of capital goods and machinery, as well as for its operation and management with approximately INR 9 crore designated towards acquisition of capital machinery. Furthermore, the company has entered into a technology agreement with Miba Sinter for various new technologies which may be required within the domestic market, and its plant has been designed to suit the said technology.
“The additional investment by Miba in our company, emphasizes 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,” explained Hari Nair, Chairman, Sintercom India Ltd. “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.”
Image Source: Sintercom India Ltd