Advanced Sys-Tek files draft papers with SEBI to raise funds via IPO

Advanced Sys-Tek Ltd, an industrial automation solutions provider, has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹98 crore and an offer-for-sale (OFS) of up to 26 lakh equity shares by existing shareholders, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

The Gujarat-based company proposes to utilise the net proceeds from the fresh issue primarily to fund its expansion plans and working capital requirements.

Out of the total IPO proceeds, around ₹15.96 crore will be used for capital expenditure, including setting up a fabrication facility at its Vadodara plant and constructing a new building with related infrastructure such as HVAC, electrical, fire safety and plumbing systems. It will also invest in solar rooftop installations and new machinery, as per the DRHP.

Further, ₹50 crore has been earmarked towards long-term working capital requirements, while the remaining funds will be used for general corporate purposes.

Advanced Sys-Tek is an industrial automation solutions provider catering to petroleum, oil and lubricants (POL) and petrochemical storage and distribution terminals, including fuel farms. It also provides liquid and gas fiscal metering systems (metering skids) and automation solutions for LPG bottling plants.

Inga Ventures and Sowilo Capital Advisors LLP are the book-running lead managers to the issue, while MUFG Intime India is the registrar to the offer. The company has proposed to list its equity shares on the BSE and NSE.