The Hindu Business Line : Vijayeshwari Textiles plans Rs 90-cr public issue

Advertisement

Mumbai, Jan. 29 Vijayeshwari Textiles Ltd, a company engaged in the production of cotton yarn and textile made ups, proposes to raise Rs 90 crore from the capital market with a public issue of shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process.

The price band has been fixed between Rs 115 and Rs 130 per share.

Pre-issue, the promoters' shareholding stands at 84 per cent and is expected to go down to 48 per cent post-issue.

The proceeds will part finance the company's expansion in all its divisions, namely, spinning, weaving and processing. In the spinning segment, the company is adding 50,688 spindles (46,004 spindles), 80 looms (84 looms) in the weaving segment and the processing capabilities are being doubled to 30,000 metres per day from the current 15,000 metres per day. The company also proposes to take over a sewing facility with a capacity of 24,00,000 pieces per annum and is further setting up an additional capacity of 26,00,000 pieces per annum.

"Total cost of the expansion is estimated to be Rs 240 crore, out of which Rs 170 crore has already been tied up through term loans from banks," said Mr AL. Ramachandra, Managing Director, Vijayeshwari Textiles Ltd.

The issue opens on February 8 and closes on February 13. IDBI Capital Market Services Ltd is the book running lead manager for the issue.