V-Guard keeps Feb 18 IPO schedule

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Mumbai: The Kerala based V-Guard Industries is confident to go ahead with its initial public offer (IPO), said company official. The issue opens on February 18, reported Business Line. "Despite the current bearish market conditions, the company has decided to stick to its schedule," said Kochouseph Chittilappilly, Managing Director, V-guard. V-Guard, a manufacturer of electrical and electronic products, is offering 80 lakh equity shares of which four lakh have been reserved for employees. The price band for the issue has been fixed between Rs 80 and Rs 85. Past few weeks witnessed poor investor response IPOs causing companies either to withdraw or defer their plans. The company is expecting to raise Rs 68 crore at the upper end of the price band and Rs 64 crore at the lower end. The shares of the company are proposed to be listed on the BSE and NSE. "We have been in this industry for over 30 years, enjoying a brand image in the markets. We feel that due to the brand name of the company the issue will get a good response from both the institutions and the retail investors," Kochouseph said. The raised fund will be used to set up cable manufacturing facilities in Coimbatore and Uttaranchal, an enameling plant at Coimbatore, a development and pilot production plant for water heaters, fans and pumps at Himachal Pradesh and Coimbatore, and service and distribution centers in Bangalore, Hubli and Vijaywada.