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Published: Dec 29, 2021
Updated: Dec 29, 2021

V-MARC INDIA LTD.: An attractive offer price

Haridwar-based V-Marc India, a well-known manufacturer of BIS and CE certified wires and cables under the popular brand V-Marc has embarked upon a capital expenditure programme to set up a green field manufacturing facility at Roorkee. With a view to finance this capex, the company has planned to come out with an initial public offering of 68.40 lakh shares of Rs. 10 each to raise around Rs. 25 to 30 crore. This will be the first company from Uttarakhand to get its shares listed on NSE Emerge.

Promoted by Vikas Garg and Mrs. Meenakshi Garg, the company has two manufacturing facilities manufacture various types of matchless quality Wires & Cables such as FR, FR-LSH, ZHFR, PVC Single & Multicore Copper / Aluminum Cables, XLPE/PVC insulated Flat Cables, Co-axial Cables, Rubber Cables, LAN Cables, LT Power/ Control Cable, HT Cables and many more. Says Mr. Vikas Garg, Managing Director, our range of wires & cables caters specific needs of clients meeting all necessary quality standards. V-Marc derives its strength from its customers. The growth of the latter is a prerequisite to the growth of the company and hence customer’s satisfaction is its prime objective. The company has earned the trust and reputation in INDIA by winning the customer’s confidence. In an ongoing process to improve Customer Satisfaction V-Marc offers a variety of services: • Commercially competitive prices.
• Reliable & consistent quality.
• Reliable & just in time delivery.
Product development for a changing in market.
• A targeted stock policy.
• Technical
support for applications/ projects.

The company sells their products through a diversified sales & distribution mix, majorly by 1) securing government tenders for supply to government projects 2) supply to EPC contractors for turnkey projects and 3) their dealer & distribution network of more than 600 dealers and direct sales to few private companies. It has widespread domestic presence through its customers spread over 19 states. It caters to a diverse customer base comprising government companies, PSUs, retailers, distributors, dealers and contractors across industries including power, real estate, telecom and railways.

The rising demand for the company’s products at home as well as abroad is well reflected in the company’s financial performance. During the fiscal 2020, it had grossed a revenue of Rs. 171.24 crore with an EBITDA of Rs. 11.44 crore and earning a net profit of Rs. 4.65 crore. Prospects ahead are all the more promising. The wires and cables industry which consists of power cables, building wires, telecom cables, control & instrumentation cables, optical fiber cables and other cables is projected to grow at a CAGR of 11% and is a direct beneficiary of development of power generation and distribution and in view of this, the prospects for the company are robust. The company is offering its shares at a price of Rs. 40 (Rs. 10 face value + Rs. 30 premium), which is highly attractive for the investing public. Needless to say the issue is worth investing.