By IANS
Kochi (Kerala) : Kerala-based V-Guard Industries Ltd, engaged in the manufacturing and marketing of electrical and electronic products, is all set to tap the capital market with an Initial Public Offer (IPO), said the company in a statement here Friday.
The company proposes to offer 8 million equity shares of Rs.10 each at a premium to be decided through a 100 percent book building process out of which 400,000 equity shares have been reserved for employees of the company, the statement said.
The net offer to public shall be 7.6 million equity shares at Rs.10 each.
Kochouseph Chittilappilly, managing director of the company said the brand V-Guard has been present in this industry for the last thirty years.
“On account of this long-standing presence in the Indian market we believe that we enjoy considerable brand equity and reliability in the market,” said Chittilappilly.
The total sale of the company in the last fiscal was Rs.2.22 billion.
V-Guard proposes to use the proceeds from the IPO primarily for setting up of facilities for cable manufacturing in Coimbatore and Uttranchal, an enamelling plant at Coimbatore and also production plants for water heaters, fans and pumps in Himachal Pradesh.
V-Guard filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) early this week.