The Hindu Business Line : KPR Mill files draft red herring prospectus with SEBI

The public float involves issue of 59,12,100 equity shares of Rs 10 each constituting 15.69 per cent of the fully diluted post-issue equity share capital of the company.

Coimbatore April 2 The Coimbatore-based KPR Mill Ltd has filed the draft red herring prospectus with SEBI for a public issue to raise funds through the book-building route.

The public float involves issue of 59,12,100 equity shares of Rs 10 each constituting 15.69 per cent of the fully diluted post-issue equity share capital of the company.

Expansion plans

In the objects of the issue, the company stated that it has planned to expand the capacity at its garment facility at Arasur near Coimbatore and at the processing facility at the SIPCOT industrial complex at Perundurai in Erode district.

It will use part of the proceeds of the public issue to invest in a new knitting unit at Arasur and in installing windmills at Thandyarkulam in Tirunelveli district,besides for acquiring balancing equipments for its spinning mill at Sathyamangalam and for other corporate purposes.

The company would be utilising Rs 18.27 crore for the expansion of garment facility at Arasur, Rs 39.7 crore for the expansion of the processing facility at SIPCOT, Perundurai, Rs 25.9 crore on the knitting facility planned at Arasur and Rs 56.2 crore on the installation of windmills in Tirunelveli district.

For the addition of balancing equipments at its Sathyamangalam spinning facility, it would spend Rs 13.8 crore.

The company has not incurred any expenditure on these projects at the time of filing of the draft prospectus.

At Arasur, apart from acquiring new machinery, it also would be establishing a fully computerised design studio that would enable users to view clothing designs on a virtual 3D figure.

Windmills

The windmill project involves installation of 5 windmills with a total generating capacity of 8.25 MW.

The company exports much of its readymade knitted garments. Among its overseas clients are Carrefour, Penneys (Primark), Pom-tex, C& A, Ethel Austin etc.

It produced 11.16 million pieces of readymade knitted apparel during the year ending March 31, 2006 and in the first nine months of the current fiscal, the production was 7.31 million pieces.