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Dinesh Engineers has fixed a price band of₹183-185 per share for its forthcoming initial stake sale, with the company expecting to raise about ₹185 crore at the upper end of the price band. The company’s initial public offering (IPO) will open on September 28 and close on October 3.
The Navi Mumbai-based company has set September 27 as the date for anchor investor allocation. The IPO comprises one crore fresh shares, Dinesh Kargal, Managing Director, Dinesh Engineers, told reporters at a press conference here on Wednesday.
The company provides support services to telecom vendors such as project management for laying of duct and OFCs, construction of basic transmission and telecom utilities, dark fibre leasing and OFC network construction.
Since 2011, the company has laid a fibre network of about 7,500 km for telecom operators across Maharashtra, Gujarat, Uttar Pradesh, Bihar, Karnataka and Rajasthan.
Dinesh Engineers, which had filed the Draft Red Herring Prospectus or initial papers with SEBI on March 28, intends to raise ₹250 through the public float, sources had told BusinessLine last week.
Read the story: Dinesh Engineers plans to raise ₹250 crore through public float
“While deciding the valuation and the requirement of money needed by the company, this price is very attractive,” Dinesh Kargal said.
Dinesh Engineers intends to use the proceeds to build its own optical fibre cable (OFC) network of 5,400 km across Maharashtra, Rajasthan, Andhra Pradesh and Karnataka. Building its own OFC network will help the firm increase its footprint, which can be later leased out to telecom operators, he added.
The company, which started building its own network since FY11, now owns 6,000 km of OFC.
Dinesh Kargal and his wife Shashikala Dinesh Kargal are the promoters of the company. Hem Securities is the book running lead manager to the issue. The company intends to list its shares on both the BSE and NSE.
The company expects a rise in business on the rising penetration of 4G, 5G and Fibre-To-The-Home (FTTH) that will, in turn, impact the usage of OFC network.
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