The company intends to utilize the net proceeds from the issue to fund the capital expenditure for its proposed new manufacturing facility at Roorkee
Haridwar based, wires and cables manufacturer, V-Marc India Ltd, has filed its document with the regulator for an Initial Public Offering (IPO) of up to 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 to 30 crores. The company, as it informed, 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 crore, for working capital requirements to the tune of Rs Five 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 two manufacturing facilities in Haridwar, Uttarakhand. It sells products through a diversified sales & distribution mix, majorly by securing government tenders for supply to government projects and by supply to EPC contractors for turnkey projects and their dealer & distribution network of more than 650 dealers and direct sales to few private companies.
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 per cent and is a direct beneficiary of development of power generation and distribution and infrastructure and comprises a share of 40 per cent 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.