Nitco Tiles plans IPO of 1cr shares

Nitco Tiles has filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of one crore shares.

According to a release issued by the company today, the premium for shares of Rs 10 each will be determined through a 100% book-building process.

Vivek Talwar, managing director of Nitco Tiles, said: "Funds from the IPO will be used to expand our existing manufacturing facilities of ceramic floor tiles. We are also planning to enter the wall tiles segment by setting up a greenfield project or by acquiring an existing wall tile unit."

The company is also planning to install windmills to reduce power costs, he added.

The company has appointed UTI Bank, IL&FS Investmart and Karvy as the book running lead managers for the issue.