Monte Carlo Fashion gets Sebi go-ahead for IPO

Monte Carlo Fashions Ltd (MCFL) has got a go-ahead from the capital markets regulator Sebi for its estimated Rs 500-crore Initial Public Offer (IPO), wherein 54.33 lakh equity shares would be sold by shareholders including promoters and private equity firm Samara Capital.
Paving the way for IPO, Sebi issued its observations on September 12 for the public offer, which would be an Offer for Sale by selling shareholders. The lead merchant banker for the public offer is SBI Capital Markets.
The Offer for Sale is expected to hit the market later this month and will constitute 25 per cent of the post paid-up equity share capital of the company.

The company has said that its PE investor Samara Capital has decided to divest 9.5 per cent stake and promoters will dilute 15 per cent stake through offer for sale.
In June 2012, Samara Capital, a Mauritius based India focused private equity firm, through its affiliate, KIL, acquired a stake in MCFL and currently holds 18.51 per cent of the pre-Offer capital of the company acquired at an investment amount aggregating to Rs 175 crore.
After the IPO, KIL will hold 9.04 per cent after selling 20,58,026 equity shares.

The company expects the listing of equity shares will enhance visibility and brand image among existing and potential customers and provide liquidity to the existing shareholders, Monte Carlo Executive Director Sandeep Jain said.

Launched in 1984 as an exclusive woollen brand by Oswal Woollen Mills Ltd (OWML), Monte Carlo plans to continue to focus on the growth of its cotton and cotton-blended apparel to establish pan-India presence.
"As part of our growth strategy, the company has a target of establishing 275 'Monte Carlo exclusive brand outlets' by the end of fiscal 2017. We seek to penetrate further in the western and southern regions of India," Jain recently said.
He said they will continue to focus expansion in tier-I cities in north India, along side focusing expansions in tier-II cities in north, east and central India and tier-I cities of south and west India by opening additional 'Monte Carlo Exclusive Brand Outlets.