December 13, 2012

Press Release No. 1

Veto Switchgears and Cables Limited lists on NSE’s EMERGE

A  Jaipur based company Veto Switchgears and Cables today listed on the dedicated platform for small and medium enterprises (SME’s) of India’s leading stock exchange, National stock exchange (NSE). The listing was done at 9.15am this morning, with the ringing of the ceremonial bell by Mr. Mohandas Gurnani, Chairman, Veto Switchgears and Cables.

Sunil Arora, Principal Secretary to the Government of Rajasthan, Department of Industries, senior officials from NSE and Veto Switchgears were present on the occasion.

NSE had launched operations on Emerge, its SME platform on the 18th of September. Veto Switchgears is the second company to list on Emerge.

NSE’s  SME  platform EMERGE symbolizes the aspirations of a large number of entrepreneurs, actively participating in the India growth story and NSE has adopted the best global practices followed across the world, to establish a credible  and  efficient  Exchange  for  such  entrepreneurs and  Emerging Enterprises. The platform will significantly improve access to risk capital for such companies. Based on investor feedback, NSE has put in place a strong and trustworthy admission process for listing on EMERGE. These processes include third party  diligence,  to  give  confidence  to  investors  to  invest in these companies,   while   NSE’s  handholding  of  SME  entrepreneurs  will give confidence  to  the  emerging  companies, to raise capital for their future plans.

Companies with a post-issue face value of capital up to Rs 25 crore can raise funds and list on Emerge and companies have the option of migrating to the main trading platform.

MD  and  CEO  of  NSE, Mr. Ravi Narain said, “We are keen that it becomes available  and  more  importantly,  a  sustainable  platform  for India’s best emerging  businesses  to  raise  capital from informed investors. Globally, junior  platforms  have  succeeded  by  coordinated  efforts  of exchanges, merchant  bankers  and investors including angel investors, venture capital and  private  equity  community.  We have engaged extensively with this ecosystem in India and have tried to understand their expectations.”

Joint MD of NSE, Ms. Chitra Ramkrishna said,  “We  have  tried  to differentiate  our  offering  for  SME’s  ,  who  want  to raise capital by focusing  on  reducing costs for the emerging companies, both in the run up to  their  listing  and  in  the  post  listing  phase. This will give more confidence to investors to invest in the companies, which have good growth potential and high standards of corporate governance.”

NSE is providing more visibility to these small companies by sponsoring research on them, through the highly regarded Crisil research agency. Veto switchgears has got a 4/5 grading from Crisil.

Veto manufactures electrical wires, cables and accessories in Hardwar, Uttarakhand. Its electrical accessories are sold under the ‘Veto’ brand while wires and cables are sold under the ‘Vimal Power’ brand. The company raised Rs. 25 crore through its maiden IPO on Emerge in the first week of December.  The issue was received very well by the market and it was oversubscribed by 1.5 times.

Trading will be done on Veto switchgears in the normal market hours.