V-Guard IPO by October to mobilise Rs 70 crore

Kochi, July 3: V-Guard Industries Private Limited, a leading manufacturer of electronic and electrical goods, is to enter the capital market with an Initial Public Offer aimed at mobilising Rs 70 crore for the company's expansion plans.

Talking to newspersons here last evening, V-Guard Managing Director Kochouseph Chittilappilly said the IPO, to be launched by October this year, was aimed at increasing the company's production capacity, R&D facilities and market presence.

It also plans for issuing Employees Stock Option (ESOP) amounting to four per cent of the total share capital of the company, he said and added that the ESOP would increase the total employee stake in the company to eight per cent of the equity capital.

Mr Chittilappilly said the company had launched an aggressive market penetration drive in north India. It had opened nine new branches in the region last year.

The company, which had registered a turnover of Rs 241 crore last year, was expecting a 30 to 40 per cent increase to Rs 320 crore in this financial year.

It was aiming at a Rs 600 crore turnover by 2010, he added.

The profits during the last fiscal were Rs 13.32 crore as compared to Rs 9.21 crore during the previous financial year.

Talking about fresh investment plans, he said V-Guard was planning to invest Rs 20 crore in its L T Power Cable Plant and another Rs 20 crore to manufacture stabilisers, UPS, solar water heaters and fans.

It was planning to set up manufacturing units at Himachal Pradesh and Uttarakhand in north India, he added.

UNI