Wednesday, January 17, 2007

Redington India to hit the capital markets, to raise Rs. 125-150 crores

Redington India is planning to come out with a public offering of around 13 mn equity shares of Rs. 10 each in the price band of Rs. 95-113 through a 100% book building process to raise around Rs. 125-150 crores. The issue comprises 16.99% of the fully diluted post-issue capital of the company. The issue opens on January 22 and closes on January 25.

Redington India is a leading distributor of IT products. Redington proposes to utilize funds to establish four automated distribution centres (ADCs) and 68 service and repair centres (SRCs) in India, set up an ADC in Dubai and install an enterprise resource planning (ERP) system for operations in the Middle East and Africa through investment in its wholly-owned subsidiaries, Redington Gulf FZE and Cadensworth (India).

The company’s standalone net profit from its India operations has increased from Rs. 14.92 crores in 2003-04 to Rs. 29.12 crores in 2005-06 with a CAGR of 39.72%. In India, Redington has 10,474 partners, 35 sales office, 53 warehouses, 43 service centres and 40 partner centres. It has presence in 16 countries with channel strength of 2755.

Read the article from Business Standard.

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