Stocks

Loveable Lingerie raises Rs 200 cr thru pre-public offer placements

Our Bureau Mumbai | Updated on February 23, 2011 Published on February 23, 2011

Loveable Lingerie said on Wednesday that it has raised Rs 200 crore through a pre-initial public offering placement with SCI Growth Investments.

The company has placed 10 lakh shares at Rs 200 a piece with SCI Growth Investments, which constitutes close to 6 per cent of Loveable's fully diluted equity stake after its public coffer.

The company's 55.5 lakh-shares offer is likely to hit the market in March. This represents 33.04 per cent of the company's paid-up capital after the issue. The qualified institutional bidders will be allotted 50 per cent of the shares, high net-worth individuals 15 per cent and retail investors 35 per cent.

Credit Analysis & Research Ltd has assigned ‘grade 3' for the proposed issue, indicating average fundamentals.

The proceeds from the issue will be used for setting up a manufacturing facility to create additional capacity at Bangalore; brand building; brand development; investment in a joint venture; setting up of exclusive outlets; setting up of retail store modules for “shop-in-shop” and also to upgrade design studios; and for general corporate purposes.

The company was promoted by Mr L. Vinay Reddy in 1987.

Anand Rathi Advisors are the sole book-running lead managers to the issue.

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Published on February 23, 2011
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