The Hindu Business Line : SEL Manufacturing issue opens tomorrow

New Delhi, July 23 To part finance the expansion of its capacity, textile firm SEL Manufacturing Company Ltd plans to enter the capital markets on July 26 with a public issue of 41.38 lakh equity shares of Rs 10 each through 100 per cent book building process. The issue includes reservation of 2.07 lakh equity shares for permanent employees, leaving a net issue to the public of 39.31 lakh equity shares.

The issue closes on July 31 and the price band has been fixed at Rs 80 to Rs 90 per equity share of Rs 10 each. The issue would constitute 27.20 per cent of the fully diluted post issue paid-up capital of the company.

The shares are proposed to be listed on BSE and NSE.

The total outlay for expansion for garment manufacturing, knitting and spinning is Rs 184.57 crore. After the expansion, the company will have spinning capacities of 74,256 spindles, 7.5 million pieces per annum of garments and 7,050 tons of knitted fabrics per annum

. Further, the company has fully tied up debt component of Rs 103.79 crore under the TUFS. An individual investor has also participated to the pre-IPO placement of the company by subscribing to 5 lack equity shares at a price of Rs 75 per equity share.