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Momai Apparels, a subsidiary of Ashapura Intimates Fashion, aims to come out with the largest initial public offering (IPO) in the small and medium enterprises (SME) space. The IPO size would be to the tune of ₹41 crore. The stocks would list on the NSE Emerge.
The issue, which has a price band of ₹78-90, is to open for subscription from September 25-30. The company has managed to close its pre-IPO placement of ₹13 crore in two days, with large participation from high networth investors and Small Industries Development Bank of India (SIDBI) investing ₹3 crore. It was priced at ₹78 a share in the pre-IPO placement.
Care has assigned ‘SME Fundamental Grade 4 /5’ to the IPO indicating ‘very good fundamentals’.
Momai Apparels makes intimate garments, such as lounge wear, bridal night wear, honeymoon sets, bathrobes, sportswear and leggings for its parent company Ashapura Intimates Fashion, which operates in the retailing and exports space. It plans to utilise the funds to expand its capacity across the category by setting up a new plant at Vapi in Gujarat.
“Momai also plans to tap the subsidy provided under the Textile Upgradation Fund and build the factory in six to nine months,” said Harshad Thakkar, Chairman, Momai Apparels. “Last year, the group listed Ashapura Intimates Fashion on the SME platform at ₹40 a share. It is now trading at ₹130,” said Thakkar.
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