Veto Switchgears and Cables IPO subscribed 1.56 times

The SME IPO of 'Veto Switchgears and Cables Limited' has been subscribed 1.56 times with applications for 81,03,000 equity shares of face value of Rs. 10 ("Equity Shares") each when the issue closed today evening. The QIB portion was subscribed 1.05 times with applications for 11,43,000 Equity Shares, Non Institutional Investors segment 1.47 times with applications for 38,13,000 Equity Shares, Retail Individual Investors 2.06 times with applications for 31,47,000 Equity Shares.

Veto Switchgears and Limited ("the Company"), a company engaged in the manufacture and sale of wires & cables and electrical accessories, started accepting the bids for the IPO on Monday, December 03, 2012 with its IPO comprising of its Equity Shares of face value of Rs.10/- each for cash at a price to be decided by Book Building Method aggregating up to Rs.2,500 lacs (the "Issue"). The Price Band has been fixed at Rs.48/- to Rs.50/-.

The Company intends to utilize the Issue Proceeds to finance proposed modernization of existing facility at Hardwar, Uttarkhand, to meet incremental long-term working capital requirements and achieve the benefits of listing on the Stock Exchange which will enhance the Corporate Image and Brand Name.

The Equity Shares are proposed to be listed on the SME Platform of National Stock Exchange of India Limited - "EMERGE" and traded under the Normal Market Segment.

The Book Running Lead Manager to the Issue is "Keynote Corporate Services Limited" while the Co-Book Running Lead Manager is "Indian Overseas Bank" and the Registrar to the Issue is "Bigshare Services Private Limited". While the Market Maker is Keynote Capitals Limited, the Syndicate Members include "Keynote Capitals", "Prabhudas Lilladher", "Hem Securities" and "Ladderup Corporate Advisory".

Veto Switchgears and Cables Limited is an ISO 9001:2008 certified company, engaged in the manufacture and sale of wires & cables and electrical accessories in India. The product portfolio ranges from industrial cables, strand cables to telephone & co-axial wires, from general switches to modular switches, from ceiling fans to rechargeable fans, compact fluorescent lamps and other electrical accessories. The products are manufactured at its state-of-art manufacturing unit located in Hardwar, Uttarakhand. They supply their products under the brands "VETO" and "VIMAL POWER" through their large network of nearly 2,400 dealers to their customers. The central warehousing facility is located at Jaipur, Rajasthan.

Source : Equity Bulls

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