Fibre laying company Dinesh Engineers opens its three day IPO offering today, with plans to raise up to Rs 185 crore, as its promoters look to dilute stake and raise capital to expand business. Promoters will dilute their stake by 25.5 percent.
The communication infrastructure provider is issuing 1 crore equity shares at a price band of Rs 183–Rs 185. The net worth of the company, as on Mar. 31, was approximately Rs 108 crore, translating to book value of Rs 27 per share. The total debt on its books is Rs 26 crore.
The firm says that it will use 84 percent of the proceeds of the IPO to expand its fibre network in India, with the remainder going for general corporate purposes. The company lays fibre cables for private telecom operators and it has secured an IP-I license from the Department of Telecommunications. Dinesh Engg has created a fibre network 7,500 km long across 10 states, in addition to laying a network of around 9,500 km for telecom operators and internet service providers.