Chennai, Jan 11: Pest Management and Consultants (PMC) India Private Limited, an SSI unit and ISO 9001-2000 certified pest control service firm, is toying with the idea of coming out with an IPO to fund its aggressive expansion plans.
PMC Managing Director and CEO K Raghunandan Rao told reporters here last night that the expansion plans of the company, which was offering pest control services in various spheres of activity, included building a network of branches across India, decentralise some of its activities by giving them a separate entity and enable them grow rapidly.
The expansion plans required an investment of about Rs 45 crore and the company was planning to come out with an IPO of 70 lakh shares, raising about Rs 42 crore, during the second quarter of 2008-09 fiscal.
''We are planning to come out with the IPO for funding our expansion plans by August-October this year. We will move the SEBI for registration and seek approval for the public issue of equity shares at a premium after the end of the current fiscal ending March 31 this year,'' he added.
After identifying the consultants and the merchant banker to manage the public issue, the floor price for the premium issue of the shares would be fixed, he said.
Observing that globalisation and rapid development of the Indian industry had tremendously improved the potential for the pest management industry, Mr Rao said the expansion programme was to decentralise nine of its main activities and build adequate infrastructure by giving them separate entities.
The expansions included acquisition of a pesticide factory at Trichy at a cost of Rs 1.5 crore, setting up of a fumigation division with adequate infrastructure in 12 major notified seaports, extension of branches in the Middle East, starting a new division to market the products and establishing an exim company for marketing produts in the Middle East and SAARC countries.