D-Link to go public

NEW DELHI: D-Link plans to come out with an initial public offer of 15.24

lakh equity shares of Rs 10 each to fund its Rs 55 crore expansion plans. The

floor price has been fixed at Rs 300 per share.

The company plans to invest Rs 14.30 crore in expanding its manufacturing

facilities in Goa and set up fiber optic products manufacturing facilities with

an investment of Rs 2.02 crore. Also, Rs 29.09 crore would be invested in

setting up a software division. Additional structured cabling equipment would be

installed with an investment of Rs 0.82 crore. The company is planning to target

the high growth segments of switches and broadband access products.

KR Naik, the main promoter, said that D-Link enjoys a distinct brand image in

networking, Internet working and structured cabling products. By entering into

other segments, it has now become an one-stop-shop to all communication needs.

D-Link (India) is part of the multinational D-Link Corporation (Taiwan)

group, which along with D-link Asia currently holds 45.31per cent stake in the

company. For the six months ended September 30, 2000, the company achieved a

turnover of Rs 80.07 crore and net profit of Rs 10.54 crore.

Besides being in the digital home concept, the company manufactures

networking products like switches and routers. Last year, D-Link had entered

into structured cabling products. It plans to list its shares on the BSE, NSE

and the Bangalore Stock Exchange.