Date:05/06/2008 URL: http://www.thehindubusinessline.com/2008/06/05/stories/2008060551371400.htm

Back Avon Weighing Systems plans Rs 13.73-cr public issue

Paul Noronha

(From right) Mr Pankaj Sariya, Chairman and Managing Director, Avon Weighing Systems Ltd, with Mr Devang Vyas, Independent Director, at a press conference to announce the company’s IPO in Mumbai on Wednesday. —

Our Bureau

Mumbai, June 4 Avon Weighing Systems, which assembles and sells weighing instruments in India, proposes to raise Rs 13.73 crore through an initial public offering of shares.

The public issue will consist of 1.37 crore equity shares of Rs 10 each, to be allotted at par.

Of the total issue, the net offer to the public is of 98.36 lakh equity shares aggregating to Rs 9.83 crore, which will constitute 59.33 per cent of the post issue paid-up capital of the company. The promoter contribution is 38.96 lakh equity shares.

The issue will open on June 9, and close on June 12.

The funds raised through the IPO will part-finance the company’s Rs 17.30 crore expenditure plan for a manufacturing facility, for four showrooms for display and sale of its weighing systems, and for purchase of additional office premises in Mumbai.

The project is proposed to be funded through promoters’ contribution of Rs 4.36 crore, internal accruals of Rs 0.50 crore and a term loan of Rs 2.60 crore in addition to the IPO funding of Rs 9.83 crore.

The shares are proposed to be listed on the BSE.

The proposed manufacturing plant will be set up at Baddi in Himachal Pradesh with technical assistance from Tanita Corporation of Japan, of which Avon is the authorised dealer.

The lead manager to the issue is Keynote Corporate Services Ltd.