Oswal Woollen Mills defers IPO till Oct

Oswal Woollen Mills Ltd (OWM), part of the Punjab-based Nahar Group, has decided to defer its Rs 150-170 crore Initial Public Offer (IPO) till October this year.

"We want to focus on our ongoing consolidation and expansion programme of the company. That is why we have decided to defer our IPO for the time being and plan to come out either during October or November this year," OWM Director (Finance and Tax) Dinesh Gogna said today.

Low valuation of the textile industry was also another reason for the company to defer the public issue.

The textile industry has also been discounted by the market at present and the average Price Earning (PE) multiple of industry hovered around 7 to 8 per cent, which should have been higher.

"This was another reason behind the postponement of our issue," he said.

Earlier, the company had planned to come out with public issue of 83.2 lakh shares during last week of this month for raising a sum between Rs 150 crore and Rs 170 crore from the market.

The proceeds of this issue were proposed to be used to partly finance its expansion programmes worth Rs 253 crore.