Euro Multivision to tap capital market next week

Euro Multivision, which is engaged in the manufacture of recordable media devices like CDs and DVDs, is set to tap the capital market with its initial public offer (IPO) next week. The company plans to use the proceeds of the issue to fund its expansion initiatives.

Euro Multivision’s IPO consists of 88 lakh equity shares in a price band of Rs 70-75 per share. The issue will on September 22 and close on September 24, 2009. The company hopes to mop up a maximum of Rs 66 crore through the float.

Of the shares on offer, 50% of the issue has been earmarked for qualified institutional buyers (QIBs), 15% for high networth individuals (HNIs) and .35% for retail investors.

The issue has been assigned a Grade 3 by rating agency CARE indicating average fundamentals. Anand Rathi Advisors are the Book Running Lead Managers to the issue.

Euro Multivision plans to utilise the proceeds to set up a photovoltaic solar cell-manufacturing unit in Gujarat with a capacity of 40 MW per year. The plant, which will be completed by January 2010, is being built at a cost of Rs178 crore.