• PAGE ONE
• INDEX
• HOME

Vintron to raise Rs 18-20 cr in Q3

Vipin Kumar

NEW DELHI, July 3

THE Delhi-based Vintron Informatics Ltd is planning to float a preferential or rights issue in the third quarter of this year to mop up Rs. 18-20 crores for expanding its operations.

An earlier plan of the company to mobilise funds through a rights issue had to be dropped due to adverse market conditions, company sources told Business Line.

Nevertheless, Vintron managed to mobilise Rs. 4.94 crores through a preferential allotment recently by placing 70,55,00 equity shares of Rs. 10 each at a premium of Rs. 60 per share to the public, promoters, associates and mutual funds.

This money would be invested in the company's proposed foray into the software business. The company has identified Pune as the location to set up its software division, which will commence operations this month.

``We will invest Rs. 4 crores in our software business in the first phase. During the second phase, we will double this investment,'' the sources said, adding that Vintron's software arm would focus its attention on e-commerce and wireless application pr otocol (WAP) technologies.

In the first year, this division will have about 50 people, for which head hunting has already begun. By the end of the second year, the head count will increase three-fold to 150 people.

The other expansion plans, for which the preferential /rights issue is planned, envisage increasing the personal computer (PC), computer monitor and motherboard manufacturing capacities, the sources said.

``Our plan is to double the PC-making capacity from the present 36,000 units per annum and monitor manufacturing capacity from 70,000 units per annum with our expansion. The output of motherboards would also be increased three-fold from 1.50 lakh pieces to 4.50 pieces annually,'' they said.

As part of strengthening its marketing operations, Vintron also plans to establish 100 franchisees across the country in the current year. Currently the company has over 300 dealers in 125 cities.

During the fiscal 1999-2000, the company clocked a turnover of Rs. 97.72 crores as against Rs. 79.10 crores the previous year. Net profit for the year stood at Rs. 2.60 crores as against Rs. 2.02 crores last year.