Chennai-based Olympic Cards Limited, a 50-year-old company, has got market regulator SEBI’s approval for the DRHP of its proposed public issue. The company will soon enter the capital markets with a public issue of upto Rs 27crore to fund its proposed expansion plan for retail and manufacturing.
The company proposes to expand its retail marketing through establishing four more direct retail outlets in addition to six own retail outlets it already has. Presently, the company is operating through direct outlets located at various places across Tamil Nadu. The company is operating through five franchisee outlets as well and intends to set up more franchisee outlets so that there is more equitable distribution of its outlets across the country. These retail outlets shall operate under its brand name Olympic, according to the company’s release.
The company is a leading manufacturer of paper ô board-based products with a strong presence in southern India. Olympic Cards Ltd is presently engaged in the business of manufacturing and trading wedding invitation cards, greeting cards, envelopes, letter heads, business cards, calendars, notebooks, account books, among others. Olympic Cards Ltd proposes to utilise part of the money from the IPO to fund its plans of setting up a manufacturing unit near Chennai in addition to establishing four of its own retail outlets.
The company’s total income for the year-ended March 31, 2011, was Rs 45.7 crore and profit after tax was Rs 2.18 crore as against the total income of Rs 34.8 crore and PAT of Rs 1.2 crore for year-ended March 31, 2010. The company’s premier product is Wedding Invitation Cards accounting for more than 45 per cent of the total group sales.
Olympic Cards at present has three manufacturing facilities at Chennai and its average production of cards per day is approximately 150,000.