The Hindu Business Line : Shirdi Industries to raise Rs 50 cr via IPO

Interior furnishing products manufacturer Shirdi Industries Ltd is making an initial public offering of 65,00,000 equity shares of Rs 10 each in a price band of Rs 69 to Rs 78 per share. The issue opens for subscription on June 29 and closes on July 5.

The company announced on Friday that it would raise Rs 50 crore with the public issue to part-finance the expansion of its manufacturing capacity in Uttaranchal with a cost of Rs 127.4 crore.

``We are setting up additional capacities to manufacture medium density fibre board, particle board to touch a total of about 10 million square metres per year,'' said Mr Rakesh Agarwal, Director, Shirdi Industries. It is also setting up capacities for production of flooring, laminated doors and furniture components. The company has availed itself of term loans of Rs 56.5 crore for the plant, which is expected to commence production in December.

On the choice of location for the plant, Mr Agarwal said, " In Uttaranchal, we are assured of regular supply of wood and will receive power at cheaper rates than in other States. The excise and income tax exemptions in the State are a bonus."

Allianz Securities Ltd is the book running lead manager for the issue.

After the issue, the holding of the promoters and promoter group will get diluted to 65.38 per cent from the current holding of 88.43 per cent.

The company reported a total income of Rs 52.78 crore for the last fiscal with a net profit of Rs 4.5 crore.

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Shirdi Industries to raise Rs 50 cr via IPO