Mudra Lifestyle, garments and fabrics manufacturer and exporter, promoted by the Mudra Group, will raise Rs 300 crore through warrants and bonds to set up a yarn project in the state of Uttarakhand or Himachal Pradesh.According to a release issued by Mudra to the BSE today, the general meeting of the shareholders to get their approval would be held on January 18, 2008.The proposed Spandex or Elastomeric project would be funded by contribution from promoters by way of warrants amounting to Rs 36 crore, foreign currency convertible bonds (FCCBs), global depository receipts (GDRs) or american depository receipts (ADRs) upto Rs 200 crore, and the balance by way of bank loans.The company board approved the issue of warrant of Rs 10 per equity on preferential basis to the promoters at an effective price of Rs 120 per warrant. This price was decided according to existing rules, according to which the set price will be higher of average price for 26 weeks and 2 weeks prior to the date of announcement, which was December 19, 2007. The issue of FCCB, ADR or GDR would be on a preferential basis up to Rs 200 and would be subject to shareholders approval.After raising the money, the authorised capital of the company would go up from the existing Rs 40.01 crore to Rs 60.01 crore. The number of equity shares would go up from 4,00,10,000 to 6,00,10,000 at the rate of Rs 10 per equity share both before and after.According to the Companies Act, 1956, the board would have the authority to borrow from the existing funds and reserves upto Rs 500 crore. The board of the company would decide later if this project would be undertaken either directly as a division of the company or through a subsidiary.The company also recently received a domestic order of Rs 20 crore from institutional buyers. The order is to be executed in four months from the receipt of the order. Mudra Lifestyle has 177 automatic looms producing approximately 10.62 million metre of woven fabrics per annum, 700 sewing machines with production capacity of 3.15 million garments per annum, and processing capacity of 80,000 metres per day.
