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Thursday, January 10, 2008

Euro Multivision files DRHP with SEBI

Euro Multivision (EML), the second largest company engaged in the manufacturing of CDRs and DVDRs (Source: Optical Disk Manufacturers Welfare Association), has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an initial public offering (IPO) of 88,00,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue will constitute 36.97% of the post issue paid up capital of the company.

The issue comprises a net issue to public of 86,00,000 equity shares of Rs 10 each and a reservation of upto 2,00,000 equity shares of Rs 10 each for the employees. The company is considering a pre-IPO placement subject to a minimum net issue to the public being 25% of the post Issue paid-up capital of the company.

The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.

EML proposes to build a photovoltaic solar cell manufacturing unit with a capacity of 40MW per year at a total cost of Rs 16,756 lakh at Taluka Bhachau, Kutch, Gujarat. The Company proposes to set up this photovoltaic plant in a Special Economic Zone to be developed by them. The company proposes to meet this fund requirement through the proceeds from this Issue and the term loan component.

Incorporated in the year 2004, the Company has set up a plant for the manufacture of Compact Disc Recordables (CDRs) and Digital Versatile Disc Recordables (DVDRs). It commenced commercial production in April 2005 with five manufacturing lines having an installed capacity of 720 lakh units of CDRs and 72 lakh units of DVDRs a year. After successfully operating five lines in the first year of its commercial operation, the Company expanded its capacity by adding another five manufacturing lines in the second half of financial year 2006-07 taking the total to 10 manufacturing lines with a total installed capacity of CDRs to 1,800 lakh units a year. These lines are interchangeable and are convertible to manufacture DVDR as and when the requirement arises. Also these lines are compatible for manufacturing of pre recorded CD's and DVD's. In the same financial year, the DVDR manufacturing line was converted into CDR manufacturing line. The CDR production is fully stabilized and is operating on full capacity.

EML's manufacturing facility is situated at Taluka Bhachau, Kutch, Gujarat, which ensures international quality standards with optimum utilization of installed capacities. The major parts of the manufacturing facility are procured from VDL ODMS B.V, Netherlands , which is one of the leading suppliers for CDR manufacturing technology. Further, the manufacturing facility operates in Class 10000 (class 10,000 clean rooms, which enable it to produce clean, sterile, aseptic and dust-free products and components) environment with antistatic work stations. The manufacturing facility is completely powered by a captive power plant for uninterrupted supply.

The book running lead manager to the issue is Anand Rathi Securities Limited.

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