Redington to raise Rs 149.5cr via IPO for expansion activities

New Delhi, Jan 15 (UNI) Redington (India) Ltd, distributors of IT products and providers of logistics services, today announced plans to raise Rs 149.5 crore through a public issue of shares in the price band of Rs 95 to Rs 113.

The proceeds of the issue will be utilised for setting up five automated distribution centres in India and Dubai, 68 service and repair centres (SRCs) in India, and installation of an enterprise resource planning system for operations in the West Asia and Africa.

The investments will be made through the company's wholly-owned subsidiaries -- Redington Gulf FZE and Cadensworth (India) Private Ltd.

The money will also be used for establishment of an SRC for LCD repairs and upgradation of existing SRCs for processors and motherboards.

The company has recently forayed into distribution of mobile handsets and accessories in Nigeria and in limited territories of India. Apart from distribution, it also provides support services for IT hardware and mobile phones.

It will enter the capital market on January 22, 2007 with a public issue of 13,231,000 equity shares of Rs 10 each through 100 per cent book-building process.

The issue closes on January 25, 2007 and will constitute 16.99 per cent of the fully diluted post-issue capital of the company.

Over 60 per cent of the issue will be allotted to qualified institutional buyers, of which five per cent will be made available for allocation to mutual funds only.

Up to 10 per cent of the issue would be allocated to non-institutional bidders and 30 per cent to retail individual bidders on a proportionate basis.

The equity shares are proposed to be listed on the NSE and the BSE.

Enam Financial Consultants Private Ltd is the sole book running lead manager for the issue and Cameo Corporate Services Ltd is the registrar to the issue.

Redington posted a 39.72 per cent growth in its India operations to Rs 29.12 crore in 2005-06 from Rs 14.92 crore in 2003-04.

UNI