The Hindu Business Line : Vigneshwara Exports fixes IPO price band at Rs 121-140

Mr K.M. Poddar (right), Executive Director, Vigneshwara Exports Ltd, Mr Mahendra Poddar, Director, and Mr T.R. Prashanth Kumar, Vice-President, Karvy Investors Services Ltd, at a press conference to announce the company's IPO in Mumbai - Shashi Ashiwal

Mumbai , May 30

Vigneshwara Exports Ltd, a company dealing with home textile business, has announced its initial public offering to enter the capital market on June 7 through the book-building process. The price band has been fixed at Rs 121-140 per equity share of Rs 10 each. The issue closes on June 13 with a public issue of 47.6 lakh equity shares.

The issue would constitute 46.21 per cent of the total post paid-up equity capital of the company, which is the largest exporter of bed linen to Europe since 2003.

Eligible employees of the company will receive 3.6 lakh equity shares, while the remaining 44 lakh equity shares have been reserved for the public. QIBs would be offered 50 per cent of the net issue, of which 5 per cent would be allocated to mutual funds. At least 15 per cent would be available for non-institutional bidders and the remaining 35 per cent for retail individual bidders on a proportionate basis.

Karvy Investor Services Ltd is the book-running Lead Manager for the issue and Bigshare Services Pvt. Ltd, the registrar.

The company plans to set up an integrated and modern weaving and processing plant at Vapi, to be completed by October this year, to meet the growth requirement in the home textile exports segment. The project is estimated at Rs 200 crore, of which Rs 5.40 crore have been raised through private placement and Rs 130.75 crore through a term loan. The rest would be financed through the public issue.

"Setting up our own vertical unit will give us the needed back-up to access a bigger world market, increase capacities and minimise wastage," said Mr Mahendra Poddar, Director, Vigneshwara Exports Ltd.

The company caters to the European Union markets and entered the US, Russia and Australia recently. The company has set up its own design studio in the UK and launched its brand `Trademark House' recently.