The Hindu Business Line : House of Pearl IPO price band fixed at Rs 525-600

HALL OF FAME: Mr Deepak Seth (Left), Chairman, House of Pearl Fashions Ltd, with Mr Pallak Seth, Vice-Chairman, at a press conference to announce the company's IPO in Mumbai on Monday. - Paul Noronha

Mumbai , Jan. 8

Apparel company House of Pearl Fashions Ltd is entering the capital market with an initial public offering of 59.84 lakh equity shares of Rs 10 each through a 100 per cent book-building issue. The price band has been fixed at Rs 525-Rs 600 per equity share.

The company plans to raise Rs 346 crore to Rs 396 crore to increase its production capacity from 20 million apparel pieces per annum to 40 million pieces per annum. The expansion is expected to be completed by 2010.

The issue of equity shares comprises a fresh issue of 47.59 lakh shares by the company and an offer for sale of 12.25 lakh equity shares by the promoters. There will also be a green-shoe option of up to 6.12 lakh equity shares of Rs 10 each. The issue will constitute 33.52 per cent of the fully diluted post paid up equity share capital of the company assuming the green shoe option is exercised.

The company also plans to foray into retail by opening 10 pilot stores in India by next year.

"We have a large plan for retail and are also in talks to acquire a brand or retail chain in the US and the UK," said Mr Deepak Seth, Group Chairman.

JM Morgan Stanley Private Ltd is the sole book running lead manager for the issue.

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