The Hindu Business Line : Richa Knits to raise Rs 27 cr through IPO

Gurgaon-based knitted fabric and readymade garments manufacturer Richa Knits Ltd (RKL) is entering the capital market to raise Rs 27 crore. The company is offering 90 lakh equity shares of Rs 10 each for cash at a premium of Rs 20 per equity share (issue price of Rs 30 per equity share) aggregating Rs 27 crore.

The issue comprises promoters participation of 15 lakh equity shares at the price of Rs 30 per share, 7.5 lakh equity shares for qualified institutional bidders (QIBs), 7.5 lakh equity shares for NRIs and FIIs, 3.75 lakh equity shares reserved for employees. The net issue to the public is 56.25 lakh shares.

The issue will open for public subscription on September 13 and close on September 19.

Expansion plans

The issue will part-finance the company's expansion plans of the existing facility for knitting, dyeing and processing and garment manufacturing. The Rs 63-crore expansion would also be financed through a term loan of Rs 33 crore.

``It would be gigantic step after the expansion for Richa Knits to carve a niche in the export segment coupled with tangible presence in the domestic market. The aim is to provide its consumers with best innovative products at the most affordable prices without compromising on the quality," said Mr Sushil Gupta, Managing Director, RKL. The company's export turnover was Rs 7 crore last fiscal and it is targeting a turnover of Rs 12 crore this year, he added.

KJMC Global Market (India) Ltd is the sole lead manager to the issue.

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