HPL Electric & Power Ltd has recently approached markets regulator SEBI to raise Rs 450 crore through an IPO. Can you please elaborate on this?
HPL Electric & Power Ltd has approached markets regulator Sebi to raise Rs 450 crore through an initial public offering. The proceeds of the issue will be utilised for repayment of loans, to fund working capital requirements and for other general corporate purposes. As per the Draft Red Herring Prospectus (DRHP) filed with Sebi, the company's IPO comprises of equity shares worth Rs 450 crore. The issue is being managed by SBI Capital Markets, ICICI Securities and IDFC Bank. The equity shares will be listed on the BSE and NSE.
What are the expansion plans of the company?
We intend to expand the geographical areas in which we sell and distribute our products. We intend to expand into international markets, including to countries in the Middle East, Africa and the south-east Asian region.
Can you please tell about company's exports?
DRHP states that we seek to expand our global reach, through increased customer acceptance of our products in international markets. We currently export our products from India solely on receipt of confirmed orders. We seek to enter new international markets, primarily in the Middle East, Africa and the south-east Asian region. Towards this objective, we intend to focus on building an authorized dealer network in such markets with focus on both domestic and industrial electric equipment. We also propose to undertake promotional activities for our products, aimed primarily at panel builders, to increase acceptability for our products and for strengthening our brand in these markets.
We are presently in the process of obtaining approvals and pre-qualifications in various markets internationally and anticipate that such approvals will assist us in garnering customer acceptance for our products. We intend to exploit our current manufacturing capacities coupled with our research and development capabilities to manufacture products of quality that we believe will enable us to secure approvals from international agencies and satisfy their pre-qualification requirements.
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