The Hindu Business Line : Abhishek Mills public issue opens on Feb 20

MR ANASAHEB Mohine (left), Managing Director, Abhishek Mills Ltd, along with Mr Advait Mazmudar, UTI Bank Ltd - the book running lead managers - to announce the company's public issue in Mumbai on Thursday.

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Mumbai Feb.15 Textile and infrastructure company Abhishek Mills Ltd is entering the capital market with an initial public offering to part fund its Rs 218.78 crore expansion.

The company is coming out with a public issue of 41 lakh equity shares of Rs 10 each for cash at a premium to be decided through the 100 per cent book building process. The price band has been fixed at Rs 95 to Rs 110. The issue opens on February 20 and closes on February 26.

Expansion Cost

The issue constitutes 29.27 per cent of fully diluted post issue capital of the company. "Of the total expansion cost of Rs 218.78 crore, the company is raising term debt of Rs 149.9 crore from the technology upgradation funds scheme (TUFS) and Rs 68.88 crore will be raised from the issue and internal accruals," said Mr Anasaheb R. Mohite, Managing Director, Abhishek Mills Ltd.

The company is setting up an integrated textile plant for yarn dyeing, weaving and fabric processing at Tamgaon, Maharashtra. Post expansion, the spindle capacity will go up to 45,120 spindles from the current 33,120.