City-based denim garments maker and Star export house Globe Textiles (India) is looking to raise ₹10-11 crore through its initial public offering on the NSE’s SME platform Emerge.

The company last week filed the draft prospectus for the same and is looking to list the shares later this month on the stock exchange, said a top company official.

Globe Textiles started operations in 2008 with exports of dyed and printed fabric, chiefly sarongs and scarves. The company expanded its product portfolio by adding home textiles, denim fabric and washed denim garments.

Working capital needs “We are planning to raise ₹10-11 crore through the SME IPO. This will be primarily for working capital requirement, general corporate purposes and IPO expenses,” Bhavin Parikh, CEO, Globe Textiles, told BusinessLine .

The offer includes a fresh issue of 13.68 lakh equity shares and an offer-for-sale of 13.2 lakh shares.

The issue price is yet to be announced. Hem Securities is the lead manager to the issue.

The company has achieved a CAGR of about 30 per cent between 2011-12 to 2015-16.

In the domestic denim garments market, the Star export house is trying to make its mark through its home-grown brands — IndiGen and IndiGirl, which are currently sold through third-party e-commerce portals.

70% revenue from exports “Gradually, we will see the share of our domestic revenue to total earnings rise from the current 30 per cent. Denim is outperforming other segments in growth and with increased acceptance of the products, we see this segment growing further in the domestic market. Currently, the denim segment has 40-45 per cent share in our revenues,” said Parikh. The company’s revenues for March 2016-17 stood at ₹190 crore, growing 10 per cent year-on-year. Exports to Europe and Gulf account for 65-70 per cent of total revenues.

Globe Textiles’ denim garments capacity stands at two lakh pieces a month. It has factories at Khokhra, Ahmedabad, and another one at Piplaj near Gandhinagar.

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