Jockey plans maiden issue next year

Page Industries, the exclusive retailers of Jockey brand in India, is planning to tap the capital markets with an initial oublic offering (IPO) that is slated for the first quarter of calendar year 2007.

The company intends to use the proceeds for its expansion plans that include foray into other categories such as leisure and kidswear segment, retail expansion and brand promotion. The company has appointed IL&FS as the bankers for the issue.

It has also begun the run-up to the issue, with a brand-building exercise. The company is also believed to be scouting for a female brand ambassador for Indian market, sources close to the development told Business Standard today.

Confirming the IPO, Page Industries General Manager (Marketing) Nischal Puri said, "We have intentions of announcing an IPO and have appointed a merchant banker for the same. We are yet to finalise the issue size, listing and the percentage of stake that would be offloaded by the promoters."

The IPO, which is expected to hit the markets sometime early next year would capital funds for the company's expansion plans. Page Industries, promoted by Topandas Vehromal and his family, was incorporated in 1994 to manfacture and market garments under the brand name Jockey.

As per the Trade Mark Use Agreement entered with Jockey International Inc of the USA. The agreement, which was initially for 5 years, has been extended till 2020.

Jockey is sold in 126 countries through its licencees. In India, Page Industries retails the brand through a network of 14,000 retailers. This year, the company opened 18 exclusive branded outlets and plans to double the figure in the coming year.

The Indian innerwear market is estimated to be around Rs 4,200 crore, of which men's wear contributes Rs 2,500 crore and women segment Rs 1,700 crore. Maxwell Inustries,owner of the innerwear brand VIP is the other player listed on the BSE.