Of the total offer, the company is issuing 25.09 lakh new shares, while the balance 26 lakh shares are being offered by two investors in the company - Development Investment Trustee Company, a IL&FS Venture Corporation managed fund (2 lakh shares) and Nandi Investments, a Mauritius-based wholly owned subsidiary of Commonwealth Development Company Financial Services (24 lakh shares). Post-offering, the shareholding of these two companies will come down to 3.92 per cent and 19.58 per cent respectively, from the current 5.58 per cent and 35.71 per cent.

Apart from expanding its manufacturing facilities at Bangalore, the company will also finance its plans to create additional marketing facilities out of the issue proceeds. A part of it will also go for augmenting long-term working capital resources. While Rs 4.61 crore has been earmarked for expanding the manufacturing facilities, Rs 12.80 crore is for creating marketing facilities and Rs 15 crore will go for augmenting long term working capital of MRO-Tek.

Established in 1984, MRO-Tek is engaged in the manufacture, marketing and distribution of data communication products - Modems, multi-plexers, routers, LAN switches etc. - providing complete end-to-end solutions. Its portfolio of products include state-of-the-art WAN and LAN products. The company has a joint venture with RAD of Israel for the manufacture of RAD products. It also has exclusive marketing and distribution pact with Zyxel Communications, Cobalt Network, RAD Group and a host of others global majors in the field. In India, MRO-Tek's customers include VSNL, Indian Army, ICICI, NTPC, Satyam, Dishnet and a number of software technology parks.

For fiscal 2000, the company earned a net profit of Rs 15.90 crore from a total income of Rs 105.95 crore. For the current fiscal, the company projects a net profit of Rs 32 crore from a total income of Rs 200 crore.