Chiripal Group to raise fund for merger

The Chiripal Group plans to raise fund for the merger of its subsidiaries -Chiripal Petrochemical and Shanti Processors.

The high court gave the nod for the merger on March 31.

The group plans to raise Rs 400 crore. It will raise Rs 100-125 crore from public and the rest will be borrowed from banks, Ved Prakash Chiripal, chairman of Chiripal Group of Companies told Business Standard.

"We are planning to open issues by July. Initial public offering of around Rs 125 crore will be raised for Chiripal Petrochemical," he said.

Further he added that earlier the group had raised fund of around Rs 12 crore for Nandan Exim to set up a plant on the outskirts of Ahmedabad for manufacturing denims and cotton trouser material.

"This time we will invest Rs 400 crore for garmenting, home furnishing, weaving, processing and for embroidery work," he said.

"We will set up more than 1,000 stitching machines for garments and install latest processing and embroidery machines in our Chiripal Petrochemical unit," Chiripal added.

Group was eagerly waiting for the green signal of merger of the Chiripal Petrochemical and Shanti Processors from the high court.

"Now, we have started working on the expansion as well as fund raising process. We will tap market with the IPO in July," said Chiripal.

Chiripal said, "We are more focusing on export. Garment and furnishing will be 100 per cent exported while processing and embroidery will cater to domestic as well as to export market."

Out of the total, 75 per cent of the production will be exported, he added.