Aishwarya Telecom plans IPO to raise capital

Mumbai: Aishwarya Telecom Ltd is gearing up to tap the capital markets through an initial public offering. At the upper end of the price band of Rs 32-35, the company will raise about Rs 14 crore

Aishwarya will use these proceeds to increase its manufacturing capabilities and infrastructure, fund research projects and for general corporate purposes, said Mr G.R. Manohar Reddy, Managing Director, Aishwarya Telecom. The company manufactures devices that are used in industries such as telecom, defence, Railways and cable television.

The company has reserved about one lakh equity shares to the eligible employees. The net issue to the would be of 39-lakh shares. The test and measuring instruments industry in the country is estimated to be roughly worth Rs 600 crore. “Private and public sector telecom service providers are continuously investing in expanding their network to support the exploding number of mobile subscribers, giving a fillip to the demand for mobile and broadband testers,” said Mr Reddy. The company proposes to list its shares on the BSE.

SREI Capital Markets Ltd and Sobhagya Capital Options Ltd are managing the issue. The issue will open on April 15 and close on April 17.