Date:11/02/2006 URL: http://www.thehindubusinessline.com/2006/02/11/stories/2006021102031500.htm

Back Indo Tech Transformers to raise Rs 51 cr through IPO for expansion plans

Our Bureau

Chennai , Feb. 10

THE Chennai-based Indo Tech Transformers Ltd, a transformer manufacturer, whose public issue is open from Friday to raise Rs 51 crore, hopes to expand its capacities to enter new segments in transformer manufacturing and new markets.

Mr P.S. Jagdish, Director, Indo Tech Transformers Ltd, said the company will enter the 132 KV and 220 KV class of transformers for which there is a healthy demand. The company is now in the 110 - 132 KV class of transformers.

It would also start making a new range, the dry tech transformers, he said.

The higher capacity transformers would be made at the new facility for which the company is looking for land near Chennai. The entry into the power transformer segment would give it better reach to cater to more State Electricity Boards. The company has a strong base in the Southern States and hopes to expand to other States also, he said.

It has two manufacturing facilities in Chennai, and one in Palakkad, Kerala with a total capacity to produce about 2,450 MVA. These units can produce about 500-600 transformers of assorted capacities.

The company is reorganising its manufacturing facilities. It has a unit in Saidapet, in the heart of Chennai, and another at Thirumazhisai, a suburb . It plans to shift the operations out of Saidapet, which is a rented facility, to Thirumazhisai, he said.

The new power transformers plant is expected to cost about Rs 30.6 crore, the relocation of the Saidapet unit Rs 7.5 crore and the dry tech transformer plant Rs 2 crore, he said.

The IPO is of 39.45 lakh equity shares of Rs 10 each at a price of Rs 130 a share to aggregate Rs 51.28 crore. The issue closes on February 16.