M and B Switchgears plans IPO to fund solar power plant
Transformer manufacturer M and B Switchgears proposes to enter capital market for funding its forthcoming solar photovoltaic power plant, with a public issue of 50 lakh equity shares (face value of Rs 10 each).
January 29, 2011 / 14:08 IST
Transformers manufacturer M and B Switchgears has proposed to enter capital market for funding its forthcoming solar photovoltaic power plant, with a public issue of 50 lakh equity shares (face value of Rs 10 each).
It has filed draft red herring prospectus (DRHP) with SEBI. The issue will constitute 25% of the post-issue paid-up equity share capital of company.The company is engaged in manufacturing of distribution transformers, power transformers, furnace transformers and special purpose transformers. It is in the business of manufacturing transformers for more than 30 years.M and B has grown up its capacity of manufacturing 550 transformers to 5,109 per annum. Its existing annual production capacity in terms of KVA is 75,000 KVA of transformer per month on single shift basis. It also intends to use issue proceeds for setting up new grid connected 4 MWP solar photovoltaic power plant at Village Gagorni, District Rajghar, Madhya Pradesh. Total estimated cost of the project is Rs 71.36 crore.For the period of seven months ended on October 2010, M and B Switchgears reported net profit of Rs 59.25 lakh on total income of Rs 26.59 crore. It has debt of Rs 14.91 on its books for the same period.For the year ended FY09 and FY10, it had posted a net profit of Rs 40.95 lakh and Rs 92.14 lakh on total income of Rs 26.58 crore and Rs 37.50 crore, respectively. Promoter will reduce stake in company to 70.69% from 94.26% post issue. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
