Shilpi Cable Tech files DRHP for Rs 56 cr IPO

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Radio Frequency (RF) cable manufacturer Shilpi Cable Technologies is planning to tap capital market for business expansion. It has filed draft red herring prospectus (DRHP) with the market regulator SEBI for IPO of Rs 55.88 crore.

It basically manufactures RF cables to cater to the telecom sector and also trades in cable accessories. Its products are used in telecom towers. In mobile towers, feeders are the cables used as a high-frequency transmission medium to carry high-frequency or broadband signals between antenna and its base station. These feeder cables are vital for site's optimal performance.

Issue proceeds are proposed to be utilised for capital expenditure on cable/ wire assembly shop; for capital expenditure on Tools for 3G enabling; augmenting cable manufacturing capabilities; long term working capital requirement for the proposed new businesses and for investment in the subsidiary of the company, M/s Shilpi Cabletronics Limited, which require Rs 8.65 crore, Rs 4.47 crore, Rs 16.22 crore, Rs 15.54 crore and 5 crore, respectively.

M/s Shilpi Communication Private Limited holds 99.79% stake in the company.

For the year ended March 31, 2010, it has reported net profit of Rs 9.04 crore on total income of Rs 174.81 crore.