Veto Switchgears and Cables plans to raise Rs 25 crore through initial public issue and list shares on SME platform of the National Stock Exchange (NSE).
The company has fixed the issue price band at Rs 48—50 a share. The issue will open for subscription on December 3 and close on December 5. The company intends to use issue proceeds for modernisation of existing facility at Haridwar in Uttarakhand with an outlay of Rs 4.7 crore.
Apart from it, the funds would be used for financing incremental long-term working capital requirement with a cost of Rs 15.80 crore and enhancement of brand through advertising and other brand-building activities with Rs 2 crore, a company statement said.
The company manufactures industrial cables, strand cables, telephone & co-axial wires, general and modular switches, ceiling fans, rechargeable fans, compact fluorescent lamps and other electrical accessories at its unit in Haridwar, Uttarakhand, it said.
It supplies products under brand Veto and has dealer network of nearly 2,400 dealers across the country.
The standalone total income of the company increased to Rs 68.60 crore in the fiscal year 2012 from Rs 24.97 crore in the 2007—08 at a five year CAGR of 28.74 per cent. During the same period, the net profit after tax increased to Rs 7.22 crore from Rs 2.13 crore at a five—year CAGR of 35.67 per cent.
The equity shares are proposed to be listed on the SME Platform of the NSE — EMERGE — and traded in the SME Call auction market.