Pune-based Virgo Engineers, engaged in the manufacture of industrial valves has filed its DRHP with SEBI on 22/01/08 to enter the capital market with a public issue of 24.30 lakh equity sharers of Rs 10 each at a price to be determined by the book building process. The issue comprises of a net issue to the public of 2,360,000 equity shares and a reservation of upto 70,000 equity shares to the employees of the company. The net issue would constitute 10.04% of the post issue paid-up capital of the company.
The company proposes to list its shares on BSE & NSE. Enam Securities is the BRLM to the issue.
The issue is being made to raise funds for part financing capital expenditure of Rs 38.76 crore at the company's existing plants and Rs 63.50 crore for setting up a plant at Coimbatore. The company also intends to invest Rs 36.33 crore in its subsidiary Virgo Europa SPG and Rs 16.33 crore for pre-payment of existing debt of the company.
Virgo Engineers is an engineering firm specializing in the manufacture of flow control solutions, including ball valve, butterfly valves, actuators and valve automation systems. It also manufactures hydraulic torque wrenches, hydraulic jacks, cylinders etc. The company is in the process of expanding both its overseas and domestic operation. It has set up a procurement office in China as a precursor to setting up a manufacturing plant there. With 85% of production of its major products, ball valves, earmarked for exports, the company has invested in an overseas facility in Italy - Virgo Europe SPA, the wholly-owned subsidiary, which commenced production of large valves early this year. The company also enhanced its holding in Oklahoma-based Vintrol Inc from 70% to 100% and moved its assembly operations to bigger premises. On the domestic front, in addition to three manufacturing facilities in Pune, including a hi-tech plant, the company is setting up a new plant at Coimbatore. The process of land acquisition is over and the greenfield plant is scheduled to be operational in April this year.
For the year ended March 31,2007 the company's income was Rs 310.57 crore, and net profit was Rs 48.78 crore as against income of Rs 164.93 crore and net profit of Rs 29.72 crore for FY06. For 6 months ended 30th September 2007, the company posted income of Rs 213.52 crore and net profit of Rs 33.53 crore.