Shilpi Cable Technologies files DRHP with Sebi

Shilpi Cable Technologies Ltd (SCTL), radio frequency cable manufacturer, has filed its Draft Red Herring Prospectus (DRHP) with market regulator Sebi for an Initial Public Offer (IPO) of around Rs 55.88 crore. 

Issue proceeds are proposed to be utilised for capital expenditure on cable/ wire assembly shop which would require an investment of around Rs 8.65 crore; for capital expenditure on Tools for 3G enabling the investment would be around Rs 4.47 crore; for augmenting cable manufacturing capabilities the investment would be around Rs 16.22 crore; for supplementing the long term working capital requirement for the proposed new businesses by around Rs 15.54 crore, for making an investment in the subsidiary of the company, M/s Shilpi Cabletronics Limited of Rs 5 crore and to raise Rs 3 crore for general corporate purposes. For the year ended March 31, 2010, it has reported net profit of around Rs 9.04 crore on a total income of around Rs 174.81 crore. 

SCTL basically manufactures Radio Frequency cables for the telecom sector and also trades in cable accessories. The company product portfolio includes Radio frequency Cables of various sizes for the telecom sector, low voltage power cables and cable accessories. Its products are used in telecom toweRs In mobile towers, feeders are the cables used as a high-frequency transmission medium to carry high-frequency or broadband signals between antenna and its base station. These feeder cables are vital for site’s optimal performance. In year 2008, the present promoters of Shilpi Cable Technologies Limited bought-out their joint venture partner, Rosenberger Hochfrequenztechnik GmBH & Co KG. The JV was set-up to take up the project of manufacturing RF cables. 

The company has appointed D and A Financial Services Private Limited, New Delhi as their Sole Book Running Lead Manager (BRLM) to the issue. 

About Shilpi Cables: 
Shilpi Cable Technologies Ltd (SCTL) is a company basically engaged in manufacturing of cables for the Telecom sector. The company’s product portfolio includes RF Cables of various sizes for the telecom sector, low voltage power cables and cable accessories. 

Company continues to focus on research and development as a core thrust of its business. They intend to continuously develop customized cables for customers to satisfy their requirements. The factory is located in Chopanki, Bhiwadi, Tehsil-Tijara, Dist. Alwar, Rajasthan. The company makes continuous efforts to apply modern techniques in the manufacturing process as a practice, in order to achieve better quality products. They constantly endeavour to improve productivity levels by optimum resource utilization, improvement in manufacturing process, skill up-gradation of workers, modernization of machineries to achieve better asset turnover.