Parth Electricals & Engineering Ltd

Use of Proceeds

The funds raised through this IPO will be used for:

Initial public offer of upto 29,24,800 equity shares of face value of Rs. 10/- each ("Equity Shares") of the company at an issue price of Rs. 170 per equity share (including a share premium of Rs. 160 per equity share) for cash, aggregating up to Rs. 49.72 crores ("public issue") out of which 1,46,400 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 170 per equity share for cash, aggregating Rs. 2.49 crores will be reserved for subscription by the market maker to the issue (the "market maker reservation portion"), and 68,800 equity shares aggregating up to Rs. 1.17 crores will be reserved for subscription by eligible employees (as defined hereinafter) (the "employee reservation portion"). The company, in consultation with the brlm, may offer a discount of up to [*]% of the offer price (equivalent to Rs. [*] per equity share) to the eligible employees bidding in the employee reservation portion ("employee discount"). the public issue less market maker reservation portion and employee reservation portion i.e. issue of 27,09,600 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 170 per equity share for cash, aggregating up to Rs. 46.06 crores is hereinafter referred to as the "net issue". The public issue and net issue will constitute 21.40% and 19.82% respectively of the post- issue paid-up equity share capital of the company. The company, in consultation with the brlm, undertook a private placements of specified securities, as permitted under applicable laws, to specified persons, for 7,25,000 equity shares ("pre-ipo placement"). the pre-ipo placement has not exceeded 20% of the fresh issue. The pre - ipo placement was at a price decided by the company, in consultation with the brlm. since the pre-ipo placement was undertaken, 7,25,000 equity shares allotted under the pre-ipo placement have been reduced from the fresh issue, subject to the offer complying with rule 19(2)(b) of the securities contracts (regulation) rules, 1957, as amended ("scrr"). our company has appropriately intimated the subscribers to the pre-ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that our company may proceed with the offer or the offer may be successful and will result into listing of the equity shares on the stock exchanges. further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement were appropriately made in the relevant sections of the red herring prospectus. the price band and the minimum bid lot will be decided by the company. A discount of Rs.8 per equity share is being offered to eligible employees bidding in the employee reservation portion.