The Hindu Business Line : V-Guard IPO price band set at Rs 80-85

Kochi Feb. 1 V-Guard Industries Ltd has announced a price band of Rs 80-85 for its forthcoming initial public offering of 80-lakh equity shares with a face value of Rs 10 each at a premium.

The net issue to the public comprises of 76-lakh equity shares, while four-lakh shares have been reserved for its employees. The issue is slated to open on February 18 and close on February 21.

The issue would constitute 26.80 per cent of the fully diluted post issue paid up equity share capital of the company. For a face value of Rs 10, the floor price is eight times the face value and cap price is 8.5 times, a press release from the company said. The company is likely to mobilise Rs 68 crore at the upper end of the price band.

Pilot production

The capital raised from the issue is to be deployed to set up cable manufacturing facilities in Coimbatore and Uttarakhand, an enameling plant at Coimbatore, and development and pilot production plants for water heaters, fans and pumps are also envisaged at Coimbatore and Himachal Pradesh.

The company has been making profits and paying dividends consistently during the last five years. The net profit of the company has grown from Rs 4.89 crore in March 2003 to Rs 13.49 crore in March 2007.

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V-Guard IPO price band set at Rs 80-85