Shilpi Cable plans over Rs50 crore IPO

Radio frequency (RF) cables manufacturer, Shilpi Cable Technologies, is eyeing an IPO of over Rs 50-crore by end-2010 and plans to file its draft red herring prospectus (DRHP) with Sebi this week, a top company official said.

"We plan to launch our IPO of around Rs 56-crore by end-this year. We will be filing our DRHP with Sebi for the same this week," Shilpi Cable's director, Manish Goel, said here.

The Delhi-based company will use the IPO proceeds to set-up a wire and cable assembly shop, expand its product portfolio and manufacture cables for 3G networks, Goel said.

The company will also manufacture low voltage power cables and cable accessories, he said.

In 2008, Shilpi Cable bought-out its joint venture partner, Rosenberger Hochfrequenztechnik GmBH & Co KG for Rs 22-crore. "The JV was set-up to manufacture RF cables but our partner wanted a majority stake which we were not willing to concede," Goel said, adding, "hence, we bought-out their stake."

The company caters primarily to the telecom sector and its products are used in telecom towers. "This segment is poised for exponential growth over the next few years and hence, our growth prospects are immense," he said.

In FY 10, the company clocked a Rs 170-crore turnover and a PBT of Rs14.9-crore. While Goel would not disclose any figures, given the growth prospects of the industry, the company could double its turnover and PAT in the next two years.

Shilpi Cable set-up a new division to cater to the passive telecom infra space about three-months ago.

"This division will look after operations and maintenance of networks and also be active in the in-building wireless solutions space," its chief, Rajesh Suri, also a Director in the company, said.

The company would also be active in the cell-site roll-out across India for independent power infrastructure companies, he added.

The company is understood to be eyeing overseas markets in Africa and the Middle-East where there is a tremendous scope for its services.