SPL Industries to go public on June 29

Delhi-based SPL Industries expects to fund its expansion plan of Rs 32.33 crore by making a public offer of 90 lakh equity shares of Rs 10 each for cash at a premium through the book building process. The issue opens on June 29 and closes on July 5, 2005.

Addressing a press conference,Vijay Jindal, joint managing director, SPL Industries, said that the major investments will go into expanding its knitted dye-fabric unit and knitted garment amounting to Rs 14.06 crore and Rs 10.50 crore respectively.

Setting up of new yarn dyeing plant will require about Rs 5.17 crore and the woven garment unit will entail an investment of Rs 1.2 crore, he added. Expanding home furnishing unit and embroidery section will involve an investment of Rs 80 lakh and Rs 60 lakh respectively.

The IPO will also fund additional working capital of Rs 5 crore and contingencies of Rs 4.50 crore. The company has been sanctioned a term loan of Rs 10 crore by IDBI under the textile upgradation fund scheme, out of which the bank has already disbursed Rs 5 crore.

The issue will be made at a price band Rs 60 to Rs 70 per share (the issue price is six times of the face value at the lower end and seven times of the face value at the higher end of the price band) raising a fund of Rs 54 crore at the lower end and Rs 63 crore at the higher end of the price band.

SPL Industries has five full-fledged factories at Faridabad and manufactures T-shirts, sweat shirts, sweaters, ladies tops and blouses, kids and toddler garments. Major customers of SPL Industries include Gap, J C Penney, Kohl's, Haggars, Sears and PVH.