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Dinesh Engineers, a passive communication infrastructure provider company, intends to raise about ₹250 crore through an initial public offering.
The Navi Mumbai-based company is planning to launch the IPO this month itself, provided the markets remain “conducive”. The date for the IPO will be finalised soon, market sources privy to the development told BusinessLine .
The company had filed a Draft Red Herring Prospectus (DRHP) on March 28, and had subsequently received approvals for the IPO. It will issue fresh equity to raise funds through the initial stake-sale.
Dinesh Engineers intends to use the proceeds to build its own optical fibre cable (OFC) network of 5,400 km across Maharashtra, Rajasthan, Andhra Pradesh and Karnataka. The company, which started building its own network since FY11, now owns 6,000 km of OFC.
Building its own OFC network will help the firm increase its footprint, which can be later leased out to telecom operators.
Anchor placement
According to the DRHP filed with SEBI, the company intends to spend about ₹185.3 crore for setting up the OFC network. A part of the funding would be used for general corporate purposes. The company would also look at an anchor investor placement before the IPO.
Hem Securities is the book running lead manager to the issue.
It is also expecting a rise in business on the increasing penetration of 4G, 5G and Fibre To The Home (FTTH) that will, in turn, impact the usage of the OFC network.
Dinesh Kollaiah Kargal, and his wife Shashikala Dinesh Kargal are the promoters of the company. Dinesh is Managing Director as well.
When contacted, company officials declined to comment before a public announcement.
The firm provides support services to telecom vendors such as project management for laying of duct and OFCs, construction of basic transmission and telecom utilities, dark fibre leasing and OFC network construction, among others. Since 2011, the company has laid a fibre network of about 7,500 km for telecom operators across Maharashtra, Gujarat, Uttar Pradesh, Bihar, Karnataka and Rajasthan, among others.
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