| Hyderabad-based Kernex Microsystems (India) Private Limited is entering the capital market on Monday to raise over Rs 99 crore to finance its facilities for anti-collision devices (ACDs) to be used by the Indian Railways.
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| The price band of the issue is in the range of Rs 225 and Rs 250 per equity share of the face value of Rs 10 each. The issue is being made through 100 per cent book-building process. The issue closes on December 3, 2005
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| The company is planning to set up a manufacturing facility on a 20-acre land in the hardware park located near the upcoming Hyderabad international airport at a cost of Rs 20 crore.
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| It also plans to establish INelligent Transportation Technology Centre at a cost of Rs 22 crore for simulation and testing of advanced transportation control systems besides undertaking R&D projects.
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| Addressing the media here on Saturday, L V Raju, managing director of the company, said that the exclusive rights to manufacture ACDs for the Indian Railways was going to place Kernex in a niche position in the country. While Konkan Railways holds the IP rights of the ACDs, Kernex holds the exclusive manufacturing and marketing rights in the country and abroad.
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| Besides manufacturing 10,000 to 15,000 ADCs a year, the proposed manufacturing facility would also manufacture auto driving devices and special signalling systems, which would also be used for railway automation and safety enhancement purposes.
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| The company, which was incorporated as a software company in 1991, has transformed into the development of software embedded hardware products for the railways.
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| The company's income during 2004-05 stood at Rs 53.2 crore with a net profit of Rs 8.96 crore. Its income during the first five-month period in the current fiscal was Rs 19.4 crore and the net profit was Rs 6.2 crore as per the details given by the company. |
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