V-Guard Industries, a Kerala based company engaged in the manufacturing and marketing of electrical and electronic products, has fixed the issue price at Rs 82 per equity share. The company had come out with a public issue of 80,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 65.60 crore out of which 4,00,000 equity shares have been reserved for eligible employees.
The net issue to the public will be 76,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 62.32 crore. The issue will constitute 26.80% of the fully diluted post issue paid-up capital of the company and the net issue to public will constitute 25.46% of the fully diluted post issue paid-up capital of the company.
The issue, which was a 100% book built issue, was oversubscribed 2.70 times. The issue received an good response with the qualified institutional buyers' portion being oversubscribed by more than 1.74 times, the retail portion by 4.24 times and the HNI portion by 2.92 times.
During the year 2006-07, V-Guard achieved a total turnover of Rs 22227.48 crore. The sales of the company has grown from Rs 11061.46 lakh as on March 2003 to Rs 22227.48 lakh as on March 2007 at a CAGR of 19.06%. The profit after tax of the company has grown from Rs 489.97 lakh on March 2003 to Rs 1349.69 lakh in March 2007 at a CAGR of 28.83%.
V-Guard Industries has embarked on expansion project to be funded by IPO proceeds. The capital raised from the issue will be deployed to set up Cable manufacturing facilities in Coimbatore and Uttaranchal, Enameling Plant at Coimbatore, Development and Pilot Productions Plants for water Heaters, Fans and Pumps at Himachal Pradesh and Coimbatore, Service and Distribution Centers at Bangalore, Hubli and Vijaywada.
Anand Rathi Securities Limited is the book running lead manager to the IPO and Intime Spectrum Registry Limited is the registrar to the issue.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India.
Source: Moneycontrol.com
Monday, March 3, 2008
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