V-Guard Industries to tap capital market through IPO

Chennai, Nov 22 : V-Guard Industries Ltd, engaged in the manufacturing and marketing of electrical and electronic products based in Kerala proposed to tap the capital market with an Initial Public Offer (IPO).

V-Guard proposes to use the proceeds from the IPO primarily for setting up facilities for Cable manufacturing in Coimbatore and Uttranchal, Enameling plant at Coimbatore, Development and Pilot Production Plants for water heaters, Fans and Pumps at Himachal Pradesh and Coimbatore and for setting up Service and Distribution Centres at Bangalore, Hubli and Vijayawada, a company release here today said.

V-Guard has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on November 20, to raise funds from the capital markets.

The company proposes to offer 80,00,000 equity shares of Rs ten each at a premium to be decided through a 100 per cent book-building process, out of which, 4,00,000 equity shares were reserved for eligible employees of the company.

The net offer to the public shall be 76,00,000 equity shares of Rs ten each, the release added.

UNI