The Hindu Business Line : Page Industries IPO opens on Feb 23

IPO ROUTE: Mr Sunder Genomal (right), MD, Page Industries Ltd, with Mr Pius Thomas, General Manager (Finance & Purchase), at a press conference held in Mumbai on Monday. - Paul Noronha

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Mumbai Feb. 19 Page Industries Ltd, the exclusive licensee of Jockey International Inc, is entering the capital market with an initial public offering of 28.04 lakh equity shares. The issue comprises a fresh issue of 14.12 lakh shares and an offer for sale of 13.91 lakh shares by the promoters.

The price band for the issue has been fixed at Rs 360-395.

The proceeds will fund the company's expansion plans, which include brand-building, expansion of its garment manufacturing capacity and setting up of a new garment unit near Bangalore.

Currently, the company manufactures 33 million pieces of garments annually. Post-expansion, the capacity will go up to 47 million pieces per annum. The expansion is expected to be completed by 2008. "The total cost of expansion is about Rs 50 crore, of which Rs 25 crore will be used for brand-building over the next three years while Rs 25 crore, will be for the capacity expansion," said Mr Pius Thomas, General Manager (Finance & Purchase), Page Industries Ltd.

"We are also looking to advertise more aggressively in regional languages and newspapers," he added.

The company is also looking to expand its retail presence.

"We will be opening two flagship stores every year for the next three years. We are also looking to expand our presence in Tier 2 cities and towns," said Mr Sunder Genomal, Managing Director, Page Industries Ltd.

The issue opens on February 23 and closes on February 27.