V-Guard, one of India's leading electrical and electronic brand, is all set to enter the capital market by this October with an initial public offer of about Rs 70 crore (Rs 700 million).
The public issue was aimed at raising funds to augment production capacity, enhance the research and development facilities and to strengthen the market presence of V-Guard products across the country, Kochouseph Chittilappilly, Managing Director, V-Guard, told mediapersons in Kochi.
'Along with IPO, the company has plans for an ESOP to the extent of 4 per cent of the share capital of the company', he said, adding 'this ESOP will increase the total stake of employees in the company to 8 per cent of the equity capital'.
The company had achieved a turnover of Rs 241 crore (Rs 2.41 billion) in the last fiscal 2006-07, and was looking at a 30 to 40
per cent increase in the coming year, he said.
The projected turnover for the current financial year is Rs 320 crore (Rs 3.2 billion) and it had targetted Rs 600 crore (Rs 6 billion) turnover by 2010, he said.
The company had achieved a profit of Rs 13.32 crore (Rs 133.2 million) during last fiscal compared to Rs 9.21 crore during 2005-06, he said, adding the gross sales last financial year was worth Rs 241.15 crore (Rs 2.41 billion) while it was Rs 184.08 crore (Rs 1.84 billion) in the previous year.
The company was planning for branch expansion across north India and during the last year 9 branches have been opened, taking the total number of branches to 15, he said.
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