V-Marc India Ltd, a wire and cable manufacturer based in Haridwar is set to become the first manufacturing company in Uttarakhand to potentially list its equity shares on the National Stock Exchange, V-Marc India said in a release.
The company has proposed an initial public offering (IPO) of up to 68.40 lakh equity shares, seeking to raise Rs.25-30 crore from the primary capital market. A private placement of around 8.4 lakh equity shares has also been proposed. According to the company release, V-Marc India has already filed its IPO document with capital market regulator SEBI.
Listing
The company plans to list its equity shares on the “Emerge” platform of the National Stock Exchange (NSE). The 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 company said in its media release.
Objects of the issue
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. V-Marc India has also estimated working capital requirement of around Rs.5 crore. The balance of the funds raised will be used for general corporate purposes.
V-Marc Brand
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” manufactured at its two manufacturing facilities in Haridwar.
The company sells its 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
- selling through 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.
Share of 40 pc
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 overall infrastructure. The wire and cable industry has a share of 40 per cent in the overall India electrical equipment industry, according to estimates made in the V-Marc media release.
(Featured photograph shows cable-making operations at a manufacturing facility of V-Marc India)
