A general view shows the Tata Steel works in Scunthorpe, northern England | Photo: Reuters
Tata Steel's green initiative to promote steel substitute for wooden doors in commercial and residential space through an exclusive tie-up with Hyderabad-based Ahlada Engineers has the latter taking initial publAhlada Engineers takes IPO route after exclusive biz deal with Tata Steel ic offering (IPO) route using the NSE SME platform for additional capital to build supply capacities.
Tata Steel had entered into a master manufacturing and supply agreement (MMSA) with Ahlada in August last year for procurement of close to 1.2 million doors in four years with an option to renew the pact for four more years. Coming with a touch and feel similar to wooden doors, this product would be exclusively marketed by Tata Steel under the brand name 'Tata Pravesh'.
A manufacturer of clean room equipment and stainless steel furniture for pharma and food processing industry, Ahlada started producing steel doors and the matching steel windows in the wooden finish in small quantities in 2013. With Tata Steel spotting the potential of its product, Ahlada decided to completely switch to wood finish doors and windows manufacturing with a plan to ramp up the capacity to 30,000 doors per month in line with the supply agreement.
Ahlada, which has reported a total revenue of Rs 1.27 billion in the year ended March 2018, is coming out with an initial public offer of 3.4 million shares of face value of Rs 10 each for cash in the price band of Rs 147-Rs 150 per share. The issue opens on Tuesday.