Due to the COVID-19 pandemic, small and medium companies (SMEs) were avoiding to list themselves. However, seeing the revival in large companies' IPOs, SMEs are coming forward to to get listed.
Haridwar-base wires and cables manufacturer, V-Marc India Ltd, has filed its document with the regulator for an Initial Public Offering (IPO). It is the first manufacturing company from Uttarakhand to be listed on NSE Emerge.
The offer is for 68.40 lakh equity shares of face value of Rs 10 per equity share. The company may consider to do a private placement of 8.40 lakh equity shares subject to consideration and consultation of the Book Running Lead Manager. The net proceeds from this will be utilised to fund the capital expenditure for its proposed new manufacturing facility at Roorkee to the tune of Rs 15 crore, for working capital requirements to the tune of Rs 5 crore and balance for general corporate purposes.
In FY 20, the company had a revenue from operations of Rs 171.24 crore with an EBITDA of Rs 1304.95 lakh and PAT of Rs 464.60 lakh.
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’ out of its two manufacturing facilities in Haridwar, Uttarakhand.
The company sells their 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 and their dealer & 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.