by NR INDRAN / INT

Mumbai : PG Electroplast Limited (“the Company”), is entering the capital market with its Initial Public Offer (“IPO” / “Issue”) of 57,45,000 Equity Shares of face value of `  10/- each.  The Price Band of the Issue has been fixed at ` 190/- to ` 210/- per equity share aggregating to ` 12,064.50 lakhs at the higher price band. The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited. BSE is the Designated Stock Exchange for the Issue.

The Issue opens for subscription for all Bidders on September 7, 2011 and closes on September 12, 2011. This Issue is being made through a 100% Book Building Process wherein not more than 50% of the Issue to Public shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”). Further, not less than 15% of the Issue to Public shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the Issue to Public shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price. The Issue shall constitute 35% of the post issue paid-up equity share capital of the Company.

THE ISSUE HAS BEEN GRADED BY CARE AND CARE HAS ASSIGNED “CARE IPO GRADE 3”, INDICATING AVERAGE FUNDAMENTALS TO THE INITIAL PUBLIC OFFERING OF THE COMPANY.

Almondz Global Securities Limited is the Book Running Lead Manager to the Issue and Karvy Computershare Private Limited is the Registrar to the Issue.

PG Electroplast Limited is an Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products in India. The Company manufactures and/or assemble a comprehensive range of consumer electronic components and finished products such as colour television (CTV) sets & components, air conditioners (ACs) sub-assemblies, DVD players, water purifiers and Compact Fluorescent Lamps (CFL) for third parties. As backward integration, the Company also does plastic injection moulding and manufacture Printed Circuit Boards (PCB) assemblies for CTVs, DVD players and CFL. The Company has four operational manufacturing facilities located at Greater Noida in Uttar Pradesh (Unit I and Unit III), at Roorkee in Uttrakhand (Unit II), and at Ahmednagar  in Maharshtra (Unit IV). At present, it has a consolidated installed capacity of manufacturing 16,00,000 pieces p.a. of PCB assemblies for CTVs and DVD players; 16,056 tonnes p.a. for plastic injection moulding; 16,05,000 sets p.a. of CTVs; 30,00,000 pieces p.a. of PCB assemblies for CFL; 30,00,000 pieces p.a. of CFL assemblies; and 3,00,000 pieces of DVD players at manufacturing facilities in Greater Noida (Unit I and Unit III), Roorkee (Unit II) and Ahmednagar (Unit IV).

For the FY 2010-11, sale of Colour TVs, plastic injection moulding, PCB assemblies, CFL, DVD players and trading income contributed 76.83%, 17.37%, 0.54%, 1.64%, 0.77% and 2.85% respectively of the gross sales of the Company.

Objects of the Issue:

For implementing expansion plan under Phase I and Phase II, the Company is proposing Initial Public Offering. The proceeds of IPO are intended to be deployed as under :

1.         Prepayment of the portion of term loan and line of credit facility proposed to be availed by the Company for the expansion under Phase I

2.        Expansion of the manufacturing facility at Unit III, Greater Noida (Phase I)

3.        Expansion of the manufacturing facility at Unit IV, Ahmednagar(Phase II)

4.        Meeting long term working capital requirements

5.        General corporate purposes; and

6.         Issue expenses

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