Digilogic Systems IPO will launch on January 20 with a price range of Rs 98 – Rs 104

Digilogic Systems Limited, a city-based provider of automated test equipment systems and application software for the defense and aerospace sectors, on Saturday announced that its Initial Public Offer (IPO) will open for subscription on January 20.A press release from the company said the anchor portion will open on January 19 and the issuance will be completed on January 22. The company plans to raise up to Rs 69.67 crore from the fresh issue and up to Rs 11.33 crore from the for-sale offering. The company is aiming to list on the BSE SME platform.

The price band for the issue has been fixed at Rs 98 – Rs 104 per share, and the lot size will be 1,200 shares.

The IPO will consist of a fresh issue of shares with an aggregate value of Rs 69.67 crore and an offer for sale of up to 11.50 lakh shares of face value of Rs 2 each, amounting to Rs 11.33 crore, the report said.

Indorient Financial Services Ltd is the Book Running Lead Manager and KFIN Technologies Ltd is the offering registrar.

According to the Red Herring Prospectus (RHP), Digilogic Systems plans to utilize Rs 51.73 crore of the total IPO proceeds for capital expenditure for setting up a new facility and Rs 8 crore for prepayment/repayment, in whole or in part, of certain outstanding loans held by the company.

The company plans to use the remaining capital for general corporate purposes and expense related expenses, it added.