Wires and Cables manufacturer, V-Marc India Ltd will offer its initial public offering of Equity Shares on Thursday, March 25, 2021, and close on Wednesday, March 31, 2021. The price band for the Offer has been decided at Rs 37 – Rs 39 per Equity Share. The proposed equity shares will be listed on the Emerge Platform of the National Stock Exchange.
Price Band of Rs 37-39 per equity share
Face value of Rs 10 each
Bid/Issue Opens on March 25, 2021
Bid/Issue Closes on March 31, 2021
Minimum Bid Lot is 3000 Equity Shares and in multiples
The Issue aggregating up to Rs. 2340 lakhs at a Cap Price of Rs 39 comprises a Fresh Issuance of up to 60,00,000 equity shares of the face value of Rs 10 each. The issue includes a reservation of up to 3,00,000 equity shares of face value Rs 10 each for subscription; under the “Market Maker Reservation Portion”. The Company has already completed its Pre-IPO round and received a Pre-IPO placement of 8,40,000 equity shares for a consideration of Rs 327.60 lakhs from HNI Investor Madhukar Sheth.
The Company proposes to utilize the Net Proceeds to fund the capital expenditure of up to Rs 15 crore for its proposed new manufacturing facility at Roorkee, a working capital requirement of up to Rs 5 crore, and a balance for general corporate purposes.
The Issue Structure has been decided as 50% of the Net Issue i.e. 28,50,000 equity shares shall be available for allocation to Retail Investors, and 50% of the Net Issue i.e. 28,50,000 equity shares shall be available for the Non-Institutional Investor Category. Further, QIBs can apply in the Non-Institutional Portion. Market Maker Reservation Portion is 3,00,000 equity shares aggregating 5% of the issue size.
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 2 manufacturing facilities in Haridwar, Uttarakhand. The Company sells its products through a diversified sales & distribution mix, majorly by 1) securing government tenders for supply to government projects 2) supply to EPC contractors for turnkey projects, and 3) their dealer & distribution network of more than 650 dealers and direct sales to few private companies. It has a widespread domestic presence through its customers spread over 21 states. It caters to a diverse customer base comprising government companies, PSUs, retailers, distributors, dealers, and contractors across industries including power, real estate, telecom, and railways.
In FY 20 the company had revenue from operations of Rs 17124.94 lakhs with an EBITDA of Rs 1304.95 lakhs and PAT of Rs 464.60 lakhs. Pantomath Capital Advisors Pvt Ltd. is the sole book-running lead managers to the issue.
V-Marc India Ltd. is engaged in the manufacturing and marketing of wires and cables under the brand name V-Marc. Vikas Garg, one of the Promoters commenced business in 2006 in a partnership firm manufacturing and distributing PVC insulated wires and cables and over a period evolved, expanded, and diversified to become an established manufacturer operating in the wires and cables business. V-Marc sells a diverse range of products which includes single and multi-strand cables, CCTV cables, LAN cables, coaxial cables, telephone switchboards, power cables, solar and more. V-Marc has two manufacturing facilities based in Haridwar, Uttarakhand.
V-Marc’s portfolio focuses on quality and has a diversified customer base ranging from PSUs, retailers, distributors, EPC contractors catering to sectors like power, railways, real estate, and telecom. V-Marc has a wide dealer network of comprising of over 650 dealers present across 12 states in the country.