Wires and Cables manufacturer V-Marc India Ltd has filed its document with the regulator for an Initial Public Offering of up to 68,40,000 Equity Shares of Face Value of Rs 10 per equity share.
Market sources pegged that the company plans to raise about Rs 25-30 crore. 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 crore, for working capital requirements to the tune of Rs 5 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.
It sells products through a diversified sales and distribution mix, majorly by
- Securing government tenders for supply to government projects
- Supply to EPC contractors for turnkey projects and
- Its dealer and 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 crore with an EBITDA of Rs 1304.95 lakh and net profit of Rs 464.60 lakh.
The wires and cables industry, which consists of power cables, building wires, telecom cables, control and 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 India.
The proposed equity shares are to be listed on the Emerge Platform of the National Stock Exchange.
The issue is managed by Pantomath Capital Advisors Limited.