Electric equipment maker HPL Electric & Power Ltd. plans to hit the capital market with its initial public offer (IPO) to raise Rs. 361 crore. The IPO will open open on September 22, 2016 and to close on September 26, 2016. The company has fixed the price band for its Rs 361 crore IPO at Rs 175-202 per share.
“The LED market which was worth 2700 crore in 2015 is expected to grow to 31000 crore in 2020,” said Gautam Seth, Jt. MD, HPL Electric & Power Ltd. “With the government's thrust on LEDs and the plan of 100 smart cities, we expect the electric equipment market to get a major boost,” he added.
“Since inception our thrust has been on quality not volume. From design to R&D to manufacturing and marketing everything in managed inhouse,” said Lalit Seth, CMD, HPL Electric & Power Ltd.
The proceeds of the issue will be utilised for repayment of loans, to fund working capital requirements and for other general corporate purposes, according to the prospectus of the company. HPL Electric makes metering solutions, switchgears, lighting equipment and wires and cables, among others.
The company is an established electric equipment manufacturing company, manufacturing a diverse portfolio of electric equipment, including, metering solutions, switch-gears, lighting equipment and wires and cables. The company caters to consumer and institutional customers in the electrical equipment industry.
The company currently owns and operates seven manufacturing facilities located across the states of Haryana and Himachal Pradesh, having in-house testing capabilities, including one manufacturing facility owned and operated by its subsidiary. The company has over 2,400 authorized dealers and warehouses located in 21 states and union territories across India.
The issue is being managed by SBI Capital Markets, ICICI Securities and IDFC Bank. The equity shares will be listed on BSE and NSE.