The Hindu Business Line : Birla Cotsyn plans Rs 144.18 cr IPO

New Delhi, June 24 The Yash Birla Group’s textile firm Birla Cotsyn will raise up to Rs 144.18 crore through an initial public offering to part-fund the setting up of a new integrated textile unit in Maharashtra. The Mumbai-based firm is investing Rs 320 crore for bringing together its existing facilities at Khamgaon, Ghatanji and Malkapur in Maharashtra under a single chain.

The IPO has been fixed at a price band of Rs 15-18 an equity share and the 100 per cent book building issue would open on June 30 and close by July 4.

“While Rs 100.28 crore would be collected from the retail investors, the rest would come from promoters and employees’ share,” Birla Cotsyn Co-Chairman Mr Yash Birla said here on Tuesday. Under the integration plans, 22,000 spindles, which are in operation at the Malkapur unit, would be supplemented by an additional 36,000 spindles, which are being set up.

“We have also set up an open end rotor based cotton yarn manufacturing facility having a capacity of 1,728 rotors and are now in the process of setting up a weaving unit of cotton grey fabric with 114 looms that can bring out 50,000 sq m of fabric each day,” he added.

This would help in increasing production level of yarn and readymade garments, Mr Birla said. “We will then go for our own retail outlets in the four metros and other major cities by 2009-10 where our own brand will be available,” he said.

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Birla Cotsyn plans Rs 144.18 cr IPO