BanyanTree Growth Capital-backed Rotomag Enertec files draft papers for ₹500 crore IPO

Gujarat-based Rotomag Enertec, backed by Mauritius-based BanyanTree Growth Capital, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The company plans to mobilise around ₹500 crore by issuing fresh shares, while promoters and existing shareholders, including BanyanTree, will sell up to 2.4 crore shares through an offer-for-sale. Rotomag may also explore raising up to ₹100 crore in a pre-IPO round before filing the red herring prospectus with the Registrar of Companies.

At the time of filing, promoters held 75.59% of the company, with the remaining 24.41% owned by public shareholders. BanyanTree Growth Capital accounted for a 17.58% stake, acquired in 2015 through equity shares and compulsory convertible debentures.

Rotomag Enertec manufactures direct current (DC) motors, solar-powered pumps and photovoltaic string inverters across six facilities in India. Its products serve a range of industries, including plastics, textiles, pumps, wind energy, construction equipment, material handling, floorcare, power distribution, hoist and winch, and railways.

Proceeds from the fresh issue will be used for redemption of non-convertible debentures, working capital, and general corporate purposes. The offer-for-sale proceeds will go to the selling shareholders.

For the financial year ended March 2025, the company reported a profit of ₹167.5 crore, up 134.7% from ₹71.4 crore the previous year. Revenue rose 82.2% to ₹1,265 crore from ₹694.2 crore.

Equirus Capital, CLSA India and JM Financial are the merchant bankers managing the issue.

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