Issue Period: December 3rd-5th
Issue Price (Rs): 48-50
Issue Size (Rs Cr): 25.0
Mcap (Rs Cr): 80-83
Listing: NSE Emerge
Promoters: Gurnani Group
Minimum Order Size: 3000 Shares
CRISIL Rating: SME Grade 4/5
BRLM: Keynote Capital Indian Overseas Bank

Veto Switchgears is engaged in the manufacture and sale of wires & cables and electrical accessories. Its portfolio includes industrial cables, general & modular switches, ceiling fans, CFLs and other accessories. Veto's products are manufactured in Hardwar, Uttarakhand and the installed capacity for wires & cables is 1.48 lakh bundles p.a. and for accessories is 3.8 crore pieces p.a. Its products are sold under the brands 'VETO' and 'VIMAL POWER' primarily in North-west India.

Strengths & Expansion Plans

Large Network of Distributors - Veto can utilize its network of over 2,400 dealers to leverage its brand and introduce new products.
Improving Margins - We believe that the operating margins should rise going forward as capacity utilisation improves from sub 30% levels due to higher working capital limits.

Risks

Reliance on Rajasthan - Veto could find it difficult to scale up as it relies on Rajasthan for 70% of its revenues. Building its brand in other states could take time and require substantial advertising.
Working Capital Cycle - Veto's large inventories and long working capital cycle could lead to margin pressures.

Conclusion / Investment Strategy

We recommend that investors subscribe to Veto Switchgears & Cable's IPO as the company has demonstrated steady growth and is available at an attractive valuation relative to large players such as V-Guard

Reviewer recommends Subscribing to the issue.

Review By K.M. Global Financial Services Ltd on December 5, 2012

Review Author

Veto Switchgears IPO FAQs

The initial public offer (IPO) of Veto Switchgears & Cables Ltd. offers an early investment opportunity in Veto Switchgears & Cables Ltd.. A stock market investor can buy Veto Switchgears IPO shares by applying in IPO before Veto Switchgears & Cables Ltd. shares get listed at the stock exchanges. An investor could invest in Veto Switchgears IPO for short term listing gain or a long term.

Read the Veto Switchgears IPO recommendations by the leading analyst and leading stock brokers.

Veto Switchgears IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Veto Switchgears IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Veto Switchgears IPO?"

Our recommendation for Veto Switchgears IPO is to subscribe.

As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Veto Switchgears IPO.

The Veto Switchgears IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Veto Switchgears IPO allotment status to check.

The Veto Switchgears IPO will list on Monday, February 13, 2012.

Veto Switchgears IPO Review by KM Global (Apply)

Strengths & Expansion Plans

Risks

Conclusion / Investment Strategy

Review Author

Veto Switchgears IPO FAQs

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