Cable manufacturing factory by V-Guard
V-Guard Industries Ltd., a Kerala-based company engaged in manufacturing and marketing of electrical and electronic products, proposes to tap the capital market with an initial public offering (IPO).V-Guard proposes to use the proceeds from the IPO primarily for setting up facilities for cable manufacturing in Coimbatore in Tamil Nadu and Uttaranchal; an enamelling plant in Coimbatore; development and pilot production plants for water heaters, fans and pumps in Coimbatore and Himachal Pradesh; and service and distribution centres in Bangalore and Hubli in Karnataka and Vijayawada in Andhra Pradesh.V-Guard filed a draft red-herring prospectus with the Securities and Exchange Board of India (SEBI) on November 20, to raise funds from the capital markets.Kochouseph Chittilappilly, managing director, V-Guard Industries Ltd., said: “The brand V-Guard has been present in this industry for the past 30 years.On account of this long-standing presence in the Indian market and with constant improvement in performance of our products, augmented with quality and recognition of our brand, we believe that we enjoy considerable brand equity and reliability in the market.”
The total sales of the company for the year ending March 31 amounted to Rs. 222.27 crore.The company proposes to offer eight lakh equity shares of Rs.10 each at a premium to be decided through a 100 per cent book- building process, out of which four lakh shares have been reserved for its eligible employees.The issue will constitute 26.8 per cent of the fully diluted post- issue paid-up capital of the company.The net issue to the public will be 25.46 per cent of the fully diluted post-issue paid-up capital of the company.The book-running lead manager to the issue is Anand Rathi Securities Ltd. and the Registrar to the issue is Intime Spectrum Registry Ltd., says a press release.
