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Veto Switchgears and Cables IPO opens; aims to raise Rs 25 crore

03 Dec 2012 Evaluate

Veto Switchgears and Cables has entered the capital market with an initial public offer (IPO) on December 3, 2012, with minimum application quantity kept at 3000 shares. The issue will close on December 5, 2012. Fresh issue of equity shares of face value of Rs 10 aggregating to Rs 25 crore at a price band of Rs 48 to 50 per share.

The company intends to use the issue proceeds for modernization of existing facility at Haridwar (Rs 4.7 crore), financing of incremental long-term working capital (Rs 15.8 crore), enhancement of company’s brand through advertising and other brand-building activities (Rs 2 crore), and the remaining for general corporate purposes.

The book-running lead manager (BRLM) to the issue is Keynote Corporate and co-book running lead manager is Indian Overseas Bank. The equity shares are proposed to be listed on the SME Platform of NSE. Further, CRISIL has assigned a CRISIL SME fundamental grade of "SME 4/5" (SME Four on Five) to the proposed IPO of the company. The grade indicates that the fundamentals of the company are superior compared to other SMEs in India.

VSCL is an ISO 9001:2008 certified company. Its product portfolio ranges from industrial cables, stand cables to telephone & co-axial wires, from general switches to modular switches, from ceiling fans to rechargeable fans, compact fluorescent lamps and other electrical accessories. It sells electrical accessories under the `Veto’ brand and cables under the `Vimal Power’ brand. Wires and cables contributed 54% to the company’s sales in fiscal 2012.

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