February 19, 2021: Haridwar based, Wires and Cables
manufacturer, V-Marc India Ltd, has filed its document with the regulator for
an Initial Public Offering of upto 68,40,000 Equity Shares of Face Value of Rs
10 per equity share. As per market sources, the company plans to raise about
Rs. 25 - 30 crores. The company may consider
to do a private placement of 8,40,000 equity shares subject to consideration
and consultation of the Book Running Lead Manager.
The company intends to utilize the net
proceeds from the issue to fund the capital expenditure for its proposed
new manufacturing facility at Roorkee to the tune of Rs. 15.00 crore, for
working capital requirements to the tune of Rs. 5.00 crore and balance for
general corporate purposes.
The company has an operating history of
around 15 years and manufactures and markets BIS and CE certified wires and
cables under the brand name “V-MARC” out of its 2 manufacturing facilities in
Haridwar, Uttarakhand. The Company sells their products through a diversified
sales & distribution mix, majorly by 1) securing government tenders for
supply to government projects 2) supply to EPC contractors for turnkey projects
and 3) their dealer & distribution network of more than 650 dealers and
direct sales to few private companies. It has widespread domestic presence
through its customers spread over 21 states. It caters to a diverse customer
base comprising government companies, PSUs, retailers, distributors, dealers
and contractors across industries including power, real estate, telecom and railways.
In FY 20 the company had a revenue from operations of Rs 171.24 cr with
an EBITDA of Rs. 1304.95 lakhs and PAT of Rs. 464.60 lakhs
The wires and cables industry which consists
of power cables, building wires, telecom cables, control & instrumentation
cables, optical fiber cables and other cables is projected to grow at a CAGR of
11% and is a direct beneficiary of development of power generation and
distribution and infrastructure and comprises a share of 40% of the electrical
industry in the India.
The proposed equity shares are to be listed
on the Emerge Platform of the National Stock Exchange.
The issue is lead managed by Pantomath
Capital Advisors Limited. SME market which saw a lull in the past two years due
to the market conditions and economic scenario, is gearing up once again to be
revived with interesting companies filing for an IPO on SME Exchanges. The past
six months saw bumper listings of many large companies on the Main Board which
indicates positive market sentiments and should be a boost for SME markets as
well in the coming year.
No comments:
Post a Comment