Zodiac Clothing to issue Rs 30 crore pref shares

Zodiac Clothing Company is planning to issue 7.5 lakh preference shares to Reliance Energy Investments Ltd, Matherhorn Ventures and India Capital Fund for Rs 30 crore to partly fund its capital expenditure.

India Capital Fund, REIL and Matherhorn Ventures have offered to acquire 3.5 lakh, three lakh and one lakh shares of the company respectively.

Zodiac Clothing's board met on November 6 and approved the proposal to issue preference shares of Rs 10 each at premium of Rs 390 a share, the company has informed the National Stock Exchange here today.

Salman Noorani, managing director, said, "We have a capex plan of Rs 75 crore, which includes growing our retail operations and expanding our manufacturing facilities. Of this we have raised Rs 30 crore through equity whilst the balance will be met through debt and internal accruals."

The company has further informed that exchange that besides part funding its capital expenditure, the company intends to invest in subsidiary companies and meet its working capital requirements. Zodiac Clothing's subsidiary company has also acquired a manufacturing unit in Dubai.

Zodiac Clothing has convened an extraordinary general meeting of shareholders on November 30 to seek their approval for issuing preference shares, it added.