The Hindu Business Line : Redington plans to raise Rs 149.5 cr thru IPO

IPO PLANS: Mr R. Srinivasan (left), MD, Redington India Ltd, with Mr Raj Shankar, Director, at a press conference in Mumbai on Thursday. - Paul Noronha

Mumbai , Jan. 11

Redington (India) Ltd, Chennai-based provider of IT products and support services, is coming out with an initial public offering to raise around Rs 149.5 crore in the upper end of the price band of Rs 95-113 per share.

The proceeds will be used to part-fund setting up of automated distribution centres (ADCs) and service and repair centers (SRC) in India and Dubai.

The company's offering of 1.32 crore equity shares of Rs 10 each comprises about 16.99 per cent of the fully diluted post-issue paid up capital of the company. The issue opens on January 22 and closes on January 25.

Redington is a distributor of IT products and a provider of logistics, supply chain management and other support services in India, West Asia and Africa. The company is to set up four automated ADCs in India and Dubai, apart from 68 SRCs in India.

"We will invest about Rs 42.5 crore in our wholly owned subsidiary Redington Gulf FZE for establishing ADCs in Dubai and to install enterprise resource and planning systems for operations in Middle East and Africa," Mr R. Srinivasan, Managing Director, Redington told Business Line.

Enam Financial Consultants Pvt Ltd and Cameo Corporate Services Ltd are the lead managers to the issue.