Texmo Pipes and Products, manufacturer of PVC and HDPE pipes, has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (Sebi) for an Initial Public Offering (IPO).
To fund its 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 per cent book building process, the company said in a statement here.
Texmo Pipes and Products proposes the expansion of product range and setting up of manufacturing facilities for injection mouldings, fittings and woven sacks.
The issue would constitute 44.37 per cent of the fully diluted post issue paid-up capital of the company, the statement said.
The company 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, and Videsh Sanchar Nigam. 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.
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.
