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Aksh Optifibre IPO to open on June 28

Our Bureau

MUMBAI, June 20

AKSH Optifibre Ltd, a company that manufactures optical fibre and cables, is coming out with its initial public offer. The offer bid opens on June 28 and closes on July 18.

The public issue is for 59,60,000 equity shares of Rs. 5 each, including a book-built portion of 44,70,000 equity shares and fixed price portion of 14,90,000 equity shares.

The issue is to finance an expansion and backward integration project that the company has undertaken. The company is expanding its capacity for manufacture of optical fibre cables from 50,358 ckm per annum to 81,000 ckm per annum.

It is also increasing its manufacturing capacity for opticle fibre from 1,50,000 fkm per annum to 13,00,000 fkm per annum and integrating backwards into manufacturing of quartz preforms with an installed capacity of 10,80,000 fkm per annum.

The total cost of the project is estimated to be Rs. 41.24 crores. ICICI has part-funded the project to the extent of Rs. 6.87 crores, out of which Rs. 5 crores have already been disbursed.

The company has achieved gross sales of Rs. 99.30 crores and PAT of Rs. 5.34 crores for the year ended March 31 2000, resulting in an EPS of Rs. 4.37 (face value of share Rs. 5) on an equity capital of Rs. 6.11 crores.

Dr. Kailash S. Choudhari is the sole promoter of the company. The lead manager to the issue is Anand Rathi Securities and MCS Ltd is the registrar.

The issue is being made through 75 per cent book-building route wherein at least 15 per cent of the issue shall be allocated on proportionate basis to non-institutional investors, subject to valid bids being made at or above the issue price.

The balance issue shall be allocated to the institutional investors on a discretionary basis. The fixed price portion for the remaining 25 per cent of the issue size shall be allotted on proportionate basis.

Pic.: (Right)Mr. Anand Rathi, Lead Manager, Anand Rathi Securities, and Dr. Kailash Choudhari, Managing Director, Aksh Opticfibre Ltd, at a press conference in Mumbai on Tuesday.