The recent bumper listings of many large companies on the Main Board indicates positive market sentiments and small companies are likely to take the advantage of this current IPO buzz.

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Haridwar-based wires and cables manufacturer V-Marc India Ltd has joined the party and filed documents with the regulator for an IPO to raise around Rs 25 to Rs 30 crore

The company plans to offer up to 68,40,000 equity shares of face value of Rs 10 per equity share. The company may consider doing a private placement of 8,40,000 equity shares subject to consideration and consultation of the Book Running Lead Manager.

The proposed equity shares are to be listed on the Emerge Platform of the National Stock Exchange. The issue is lead managed by Pantomath Capital Advisors Limited.

The company intends to utilize the net proceeds from the issue to fund the capital expenditure for its proposed new manufacturing facility at Roorkee to the tune of Rs 15 crore, for working capital requirements to the tune of Rs 5 crore and balance for general corporate purposes.

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The company has an operating history of 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 their products through a diversified sales and distribution mix, majorly by 1) Securing government tenders for supply to government projects 2) Supplying to EPC contractors for turnkey projects and 3) Their dealer and distribution network of more than 650 dealers and direct sales to few private companies.

It has widespread domestic presence and its customers are spread over 21 states. It caters to a diverse customer base comprising of government companies, PSUs, retailers, distributors, dealers and contractors across industries including power, real estate, telecom and railways.

In FY20 the company had revenues from operations of Rs 171.24 crore with an EBITDA of Rs 13.04 crore and PAT of Rs 46.4 crore.

The small and medium enterprises (SME) market which saw a lull in the past two years due to the market conditions and economic scenario seems to be gearing up once again and revived with certain companies filing for an IPO on SME Exchanges.