AISHWARYA TELECOM LIMITED

Issue Details: -
ISSUE SIZE : 40,00,000 Equity Shares of Rs.10/-each.
(No. Of Shares)
PRICE BAND : Rs. 32-35
OPENING DATE : 15th April'08 Closing Date : 17th
LEAD MANAGERS :BSE SREI Capital Market ltd, Sobhagya Capital Options Ltd.

Business View:
*Aishwarya Telecom Limited (ATL) is incorporated in 1995, ATL is ISO 9001:2000 Certified Company engaged in trading and manufacturing of Test & Measuring equipments for Telecom Industry. ATL manufactures mainly Fiber Optic Cable Testing Equipments, Data Network Testers, Copper Cable Testing Equipments, having R&D facility at Hyderabad, manufacturing units at Dehradun and Yanam and three marketing offices at Delhi, Mumbai and Hyderabad.

*ATL’s main customers are Telecom Service Providers like Bharat Sanchar Nigam Limited, Tata Tele Services, Bharati Telenet, Defence Sector, and Railways. ATL is planning to expand in to designing products for Defence Sector and Educational Sector. ATL is exporting cable fault locators to countries like France, Taiwan, Czech Republic, Riyadh, and Dubai. Credit rating agency CARE has assigned “IPO Grade 2out of 5”.

Objects of the Issue:
*Fund the Capital Expenditure for Research & Development of Main Frame Optical Time *Domain Reflecto Meter (OTDR) in collaboration with IIT, Chennai;
*Fund the Capital Expenditure for Research & Development of Ethernet Traffic Analyzers;
*Fund the cost of Global System for Mobile Communication (GSM)/ General Packet for Radio *Service (GPRS)/Code Division Multiple Access (CDMA) Analyzers for providing Technical Audit Services to the Mobile Operators;
*Purchase land & construct building for new corporate, marketing, and administrative and R&D office at Hyderabad.
*Purchase land & construction of building for a new production unit at Hyderabad.

Valuation :
*Considering the annualised EPS of Rs. 3.95 on fully diluted equity post IPO for FY08, the issue price at the higher band of Rs. 35, discounts the FY08 EPS by 9x and on lower price band of Rs. 32 by 8x.