Receives bids for 1.69 crore shares
S P Apparels' (SPAL) initial public offer (IPO) received bids for 1.69 crore shares compared to 65.56 lakh shares on offer, as per the data on the National Stock Exchange of India (NSE) website as at 17:00 IST. The IPO was subscribed 2.58 times on the final day of bidding today, 4 August 2016. The bidding for the IPO opened on 2 August 2016.
SPAL's IPO comprises of fresh offer of Rs 215 crore. In addition to this, there is an offer for sale (OFS) of 9 lakh shares by selling shareholder NYLIM, India Fund.
Ahead of the opening of IPO, SPAL had raised Rs 71.73 crore from allotment of 26.76 lakh shares to a slew of anchor investors. Shares have been allotted to anchor investors at Rs 268 per share - the top end of the Rs 258-268 per share price band for the company's IPO. Among the anchor investors, DSP Blackrock Micro Cap Fund was allotted 6.34 lakh shares constituting 23.7% of the total allocation to anchor investors. Among other anchor investors, Goldman Sachs India Fund was allocated 5.56 lakh shares, Birla Sun Life Insurance Company was allotted 5.56 lakh shares, Morgan Stanley Mauritius Company was allocated 3.69 lakh shares, UTI was allotted a total of 3.72 lakh shares under its two schemes, Principal Trustee Co. Pvt Ltd - Principal Mutual Fund - Principal Emerging Bluechip Fund was allotted 1.86 lakh shares.
Promoted by P Sundarajan, SPAL is a leading manufacturer and exporter of knitted garments for infants and children in India. The company is the second largest exporter among manufacturers of knitted garments for infants and children in India in terms of revenues. The company sells the menswear products through a sales and distribution network that includes 40 exclusive brand outlets, of which 37 are company owned operated stores and three are franchise stores, and third-party e-commerce platforms. SPAL is also considering launching products in the women's essential wear category under the "Natalia? brand, which is owned by the company.
The company intends to utilize about Rs 70 crore from the proceeds of fresh issue towards expansion and modernization of manufacturing facility at Tamil Nadu, Rs 63 crore towards repayment of debt, Rs 27.85 crore towards opening of new stores for sale of Crocodile brand, Rs 4.90 crore towards balancing machineries for existing dyeing unit in Perundurai and rest towards for general corporate purpose.
SPAL's consolidated profit after tax (PAT) jumped 245% to Rs 34.71 crore on 13% growth in net sales to Rs 532.83 in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015).
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