In order to raise funds amounting to around Rs 70 crore for these two projects and also repay term loans, the company plans to come out with its Initial Public Offering (IPO) at a price band of Rs 120-130.
The company has already filed a Red Herring Prospectus (RHP) with the Registrar of Companies. "We have decided to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men's wear shirts per day at an estimated cost of Rs 12.03-crore," the company's non-executive independent director, Anil Gupta, told reporters here today.
The IPO comprises 55,00,000 equity shares of Rs 10 each for cash at a price to be decided through the 100 per cent book building process, Gupta said.
The money raised through the IPO would also be used to fund a new weaving unit aimed to increase company's existing production capacity to 170 lakh meters per annum at an estimated cost of Rs 21.53 crore.
The company also has plans to make repayment of its term loans amounting to Rs 18 crore through the issue proceeds.
