Apparel maker Sudar Garments today said it has fixed a price band of Rs 72-77 a share for its initial public offer (IPO), expected to raise about Rs 70 crore.
The issue will open on February 21 and close on February 24, the company said in a statement.
The company proposes to offer 90.88 lakh equity shares of Rs 10 each to the public through 100% book building process. The IPO would constitute 49% of the fully diluted post-issue capital of the company.
At the upper band, the company is expected to fetch up to Rs 70 crore, while at the lower end it will garner Rs 65.43 crore through the offer.
The Mumbai-based textile firm, engaged in manufacturing garments for men, women and kids, said the proceeds of the issue will be used for expansion of the existing apparel manufacturing unit at Khalapur in Maharashtra, working capital requirement and setting up retail outlets and brand building.
"The company's growth strategy include penetration across different consumer segments and demographics through its brand, increase geographic penetration by spreading the network of exclusive brand outlets, enhance manufacturing capacities, target the growing segments, strengthen the competitive position and recognition of its brands," Sudar Garments Chairman and M D Murugan Thevar said.
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Besides, Sudar Garments plans to develop in-house capabilities for its marketing activities, the statement added.
"Currently, majority of our products are exported to countries such as the US, the UK and Middle East through merchant exporters or sold domestically through our selling agents.
However, going forward, our plan is to penetrate the retail market through own outlets and franchisee in domestic market and direct exports," Thevar added.
Ashika Capital is the sole Book Running Lead Manager for the issue.