Abstract:
Euro Multivision Limited filed Draft Red Herring Prospectus(DRHP) with SEBI in January,2008. The company aimed at raising substantial amount of capital through this Initial Public Offering. This capital was required by the company to finance its' new project of building a photovoltaic solar cell manufacturing unit.
Euro Multivision Limited IPO refers to the Initial Public Offering of the Euro Multivision Limited, for which the company filed Draft Red Herring Prospectus or DRHP with Securities and Exchange Board of India(SEBI) in January,2008.
Company Profile
This Euro Multivision Limited was established in 2004, but started its' commercial production of CDRs( Compact Disk Recordables) and DVDRs( Digital Versatile Disc Recordables) from April 2005. In the year 2005, the company operated with five manufacturing units, but in the last half of the financial year 2006-07, it established another five manufacturing units. In this way, the company became one of the largest manufacturer of CDRs and DVDRs in India.
Details of the Initial Public Offering
Euro Multivision Limited planned to sell its' 88,00,000 equity shares through this Initial Public Offering. The company decided to sell each of these rupees 10 shares at a price, which would be determined by the 100% book building process. Euro Multivision Limited appointed Anand Rathi Securities limited as the brLM or Book Running Lead Manager.
It was declared by the company that it would reserve 2,00,000 shares in maximum for its' own employees. The company made it clear that the Net Public Issue would constitute minimum 25% the post issue paid up capital.
The shares of the Euro Multivision Limited were proposed to be listed on NSE(National Stock Exchange) and BSE(Bombay Stock Exchange).
Reason behind the IPO
Euro Multivision Limited, which mainly manufactures CDRs and DVDRs , planned to establish a solar cell manufacturing unit in the Kutch district of Gujrat state. The new photovoltaic manufacturing unit was proposed to be set up in the SEZ, that the company decided to develop. Establishment of this new manufacturing unit required huge amount of funding. Euro Multivision Limited planned to finance this project using the capital raised through the Initial Public Offering.