City-based Sudar Garments today said it has received market regulator Sebi's approval to issue an initial public offering (IPO) to raise around Rs 65-70 crore.
"We plan to raise around Rs 65-70 crore through the proposed IPO. We have already got a nod from the Sebi and will be soon filing the Red Herring Prospectus (RHP)," Sudar Garments Director Deepak Shenoy told PTI.
The company proposes to offer 90.88 lakh equity shares of Rs 10 each to the public through 100 per cent book building process, he said.
He added that the IPO would constitute 49 per cent of the fully diluted post-issue capital of the company. Ashika Capital Ltd is the sole Book Running Lead Manager for the issue.
The textile firm engaged in the manufacturing of garments for men, women and kids would be using the proceeds to expand its existing manufacturing unit at Khopoli in Maharashtra's Raigad district.
"Currently, we have 1,50,000 sq ft of area under manufacturing in our Khopoli unit and we plan to add another 50,000 sq ft area in the same unit. The current capacity is two million garments per annum and will be scaled up substantially post the issue," Shenoy added.
He also said that the company also plans to use part of the proceeds to set up a chain of retail outlets and the rest for brand building.
The company, which has recently launched its own brand 'Glory to Glory', is also planning to launch two more brands -- 'St Paul' and 'Majesty' by February next, Shenoy added.
Besides, the company also plans to streamline its exports by tapping possibilities of tying up with ports in countries such as Dubai, Oman, South America and Africa for supply of uniforms.
"We are looking at opportunities to tie up with ports and are already in talks with government of Oman, Dubai and several South American and African countries. We hope to take the exports to 80-90 per cent post issue," Shenoy said.
Last fiscal, Sudar Garments earned a revenue of Rs 40 crore from exports. The total revenue was pegged at Rs 52 crore.
