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The initial public offering of garment manufacturer Sudar Garments will open on February 21. The company plans to raise close to Rs 70 crore through the issue by offering 90.88 lakh equity shares to the public.
The price band for the issue has been fixed at Rs 72-77. The issue will close on February 24. The shares of the company will be listed on the BSE and the NSE.
The issue will constitute 49 per cent of the fully diluted post-issue paid-up capital of the company. Qualified Institutional Buyers will be allotted 50 per cent, High Networth Individuals 15 per cent and retail investors 35 per cent.
Use of proceeds
Part of proceeds from the issue will be used for the expansion of its existing apparel manufacturing unit in Raigad district near Mumbai. This investment is estimated to be around Rs 26 crore.
The issue proceeds will also be used to set up retail outlets and for brand building. “The company's growth strategy include penetration across different consumer segments and demographics through its brand, increase geographic penetration by spreading the network of exclusive brand outlets, enhance manufacturing capabilities, target the growing segments, strengthen the competitive position and recognition its brand”, said Mr Murugan Thevar, Chairman and Managing Director at Sudar Garments.
Rating agency CRISIL has assigned the company's issue 1/5 indicating poor fundamentals.
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