Kidswear brand Gini & Jony plans to raise up to Rs 125 crore through an initial public offer (IPO) by October this year, a senior company official said here.
"We have already filed our draft red herring prospectus with the Securities and Exchange Board of India (Sebi) and expect to raise Rs 100-125 crore by September-October through the IPO," Gini & Jony Vice-President (Sales) Vikash Sharma told PTI.
The proceeds would be used to fuel the company's expansion, including its domestic and overseas retail network besides setting up a third manufacturing unit in the country, Sharma said.
With the market for kids apparel in India growing at 40 per cent year-on-year, the company expects an impressive growth this year. It is eyeing a Rs 300 crore revenue this fiscal against Rs 225 crore, a year ago.
Gini & Jony also proposes to open 110 Exclusive Brand Outlets (EBOs) and 32 flagship stores by the end of FY11. At present, the company has 12 flagship stores and 250 EBOs.
"We are planning to open 110 more EBOs by March next year and scale-up our flagship outlets to 44 by the same period from the present 12. Investment per flagship store will be around Rs 42-60 lakh," Sharma said.
The company is also looking at expanding its presence in the overseas market. In accordance with this, it now plans to set up two Gini & Jony exclusive outlets in Moscow and 12-14 Multiple Brand Outlets (MBOs) across Bangladesh, Israel, Nepal and St Petersburg.
"We are also planning to set up one more manufacturing unit in Bangalore," Sharma added.
The Bangalore unit will be operational by March with a production capacity of nine lakh garments per annum initially, he said, without divulging investment details.
Gini & Jony currently has two large units at Daman and Baddi (Himachal Pradesh) with a capacity of 50 lakh garments per annum.
