NEW DEHLI, INDIA -- Electronics manufacturing services provider PG Electroplast held an initial public offering yesterday, becoming one of the first Indian EMS companies to go public.

The company hopes to raise up to $20 million through the issue, which will be used to prepay term loans and facility expansions. The company had a net profit of $3.9 million on sales of $94 million for its fiscal year ended March 2011, according to its filing statements.

PG Electroplast, which has four contract manufacturing facilities in India, was incorporated in March 2003, and is a subsidiary of PG Group, which was founded in 1977 by chairman and managing director Promod Gupta to build components for radios, receivers and televisions. Today, the company manufactures printed circuit board assemblies and finished products for the consumer, AV and lighting markets.

The company plans to spend about $11 million of the proceeds to expand two existing plants in Roorkee and Greater Noida and to set up a new plant, which would be its fifth.

Electronics production in India reached a reported $2.3 billion in 2010, and has grown a compounded average of 18% per year since 2006. India remains a net importer of electronics hardware.

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