Texmo Pipes and Products proposes an IPO to fund expansion
Texmo Pipes and Products Limited, presently engaged into manufacturing of PVC and HDPE pipes, proposes the expansion of product range and setting up of manufacturing facilities for injection mouldings/fittings and woven sacks.
To fund this expansion plan, the Company proposes to enter the Capital markets with a public issue of 50,00,000 Equity shares of Rs 10 each through 100% book building process. The Issue would constitute 44.37% of the fully diluted post issue paid-up capital of the Company. Almondz Global Securities Ltd is the Book Running Lead Manager for the Issue and Karvy Computershare Pvt Ltd is the registrar.
Texmo Pipes and Products Limited has two production units at Burhanpur in Madhya Pradesh, where it manufactures PVC and HDPE pipes to meet the requirements of application in irrigation, agriculture, potable water supply schemes, sewerages and drainage systems, construction industry, telecom industry and bore/tube well for underground water suction.
Some of its clients during the financial year 2007-08 were Idea Cellular, Reliance Communication Infrastructure Ltd., and Videsh Sanchar Nigam Ltd. With the increase in demand for various types of pipes, the Company intends to expand its product range by venturing into manufacturing of CPVC, DWC and drip in-line pipes. Also in order to facilitate its clients with accessories for the pipes, it plans to venture into manufacturing of injection mouldings/fittings. The Company also intends to diversify in the manufacturing of woven sacks.