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The company, which is into manufacturing and exporter of knitted garments for infants and children for international customers including TESCO and Primark and also manufactures mens' wear under the brand Crocodile, is planning an offer for sale of up to 900,000 equity shares from the existing shareholders, it said.
The funds raised would be used to repayment or prepayment of debt incurred by the company, expansion and modernisation of its manufacturing facility at Valapady, Salem, Tamil Nadu, opening of new stores for the sale of 'Crocodile' products. Of the net proceeds, around Rs 63 crore is expected to be deployed for repayment or prepayment of debt, Rs 70 crore for expansion and modernisation of the manufacturing facility and around Rs28 crore into opening of new stores for Crocodile brand products.
Established in 1989, the company has been into export business for knitted garments for infants and children, mainly to United Kingdom, which constituted around 84.62 per cent of its total revenues during the fiscal year 2015. During FY15, the company exported approximately 29.15 million pieces of knitted garments for infants and children directly to its international customers, including TESCO and Primark. It also manufactures and retails menswear garments in India under the brand 'Crocodile' pursuant to a sub-license granted to it by one of its subsidiaries through an agreement with Crocodile International Pte Limited, Singapore.
It has 20 manufacturing facilities and as of September 28, 2015, the company has 4,727 sewing machines, seven cutting machines, 79 embroidery machines, 17 printing machines, 16,896 spindles and 22 dyeing machines. Its future plans include expansion and modernisation of the manufacturing facility at Valapady, Salem, Tamil Nadu, deepening product penetration with existing customers and increasing customer base, strengthening retail presence and invest in infrastructure and technology.
Further, the company has plans to enhance and develop existing 'Crocodile' brand in India, diverting resources from its established business of manufacturing knitted garments for infants and children. It is also considering the launch of products in the women's essential garments category under the 'Natalia' brand, subject to compliance with applicable law.
As of November 30, 2015, the aggregate outstanding indebtedness of the company was Rs 251.89 crore comprising of long-term borrowings, short-term borrowings and current maturities of long-term borrowings.