Aishwarya Telecom Limited, an Indian maker of telecommunications testing equipment, is entering the capital market with a public issue of 40,00,000 equity shares of Rs 10 each for cash at a premium to be decided through the 100 per cent book building process.

The price band for the issue has been fixed at Rs 32 to Rs 35. The issue will open on April 15 and close on April 17.

The net comprises a reservation of up to 1,00,000 equity shares for eligible employees and the net issue to the public would be of 39,00,000 shares. The net issue to the public would constitute 36.59 per cent of the fully diluted post issue paid-up capital company.

Aishwarya Telecom manufactures telecom fiber optic products. Its clients include BSNL, Tata Tele Services and Bharati Telenet. It also exports cable fault locators to France, Taiwan, Czech Republic and Dubai. The company also manufactures products for telephone services providers, defense sector, railways, telecom equipment companies and cable TV operators.

The object of the issue is to raise capital for financing the expenditure on the company's proposed business plans and to meet additional working capital.

The proposed issue will be lead managed by SREI Capital Markets, Sobhagya Capital Options and the registrar to the issue will be Bigshare Services.

As per our view, the issue is fairly priced. Retail Investors are still cautious about the market as volatility has hit the sentiment badly. The weakness in global markets and rising inflation in India may not prove good for the company’s IPO. The issue may not get the response it deserves.