What are you going to use all the money you are raising through the IPO? What kind of capex plans are we talking about?
Of the fresh issue of Rs 150 crore, about Rs 78 crore would be used to repay debt, Rs 63-65 crore would be used for expansion into our new facilities and the remaining amount of Rs 7-9 crore would be for general corporate purposes.
In OFS, 99% is offered by the investors and less than 1% by the promoters. The net debt level is almost similar to the amount we are looking to repay. So in all probability, we would be debt free post the IPO. Our expansion is two-pronged; one is capacity expansion in certain key products where we do not have enough capacity to cater to global as well as Indian markets and the second is introduction of new products such as VC or in ultra technologies. We aim to grow both in the domestic market as well as the international market.
The domestic market poses a great opportunity for a company like ours. We already are in a very strong leadership position but according to a Frost & Sullivan report, the growth projections are very strong in the near future of three to five years and we look to take advantage of that with our existing product line as well as cater to the new product segment where we are not present today.
Internationally, we are present in 40 countries. We have a long runway for expansion in 80-100 countries in the future and also to build our ODM business more strongly. We also want to take advantage of the China plus one strategy which has grown in prominence over the last three years.
