QIB category subscribed 2.21 times
S P Apparels' (SPAL) initial public offer (IPO) received strong response from investors. The IPO received bids for 1.74 crore shares. The IPO was subscribed 2.66 times. The bidding for the IPO ended yesterday, 4 August 2016.
Investor category wise data showed that the IPO received robust response from non institutional investors (NII). The NII category of the issue was subscribed 5.1 times. The IPO also got strong response from institutional investors and retails investors. The retail investors' category was subscribed 1.9 times. The Qualified Institutional Buyers (QIB) category was subscribed 2.21 times.
SPAL's IPO was a combination of fresh issue of shares aggregating to Rs 215 crore and an offer for sale (OFS) of 9 lakh shares from selling shareholder NYLIM, India Fund. The price band for the IPO was fixed at Rs 258-268 per share.
From the proceeds of the fresh issue, SPAL has earmarked Rs 70 crore towards expansion and modernization of manufacturing facility at Tamil Nadu, Rs 63 crore towards repayment of debt, Rs 27.85 crore towards opening of new stores for sale of Crocodile brand, Rs 4.90 crore towards balancing machineries for existing dyeing unit in Perundurai and rest towards for general corporate purpose.
SPAL raised Rs 71.73 crore from allotment of 26.76 lakh shares to a slew of anchor investors a day ahead of the opening of the IPO.
Promoted by P Sundarajan, SPAL is a leading manufacturer and exporter of knitted garments for infants and children in India. The company is the second largest exporter among manufacturers of knitted garments for infants and children in India in terms of revenues. The company sells the menswear products through a sales and distribution network that includes 40 exclusive brand outlets, of which 37 are company owned operated stores and three are franchise stores, and third-party e-commerce platforms. SPAL is also considering launching products in the women's essential wear category under the "Natalia? brand, which is owned by the company.
SPAL's consolidated profit after tax (PAT) jumped 245% to Rs 34.71 crore on 13% growth in net sales to Rs 532.83 in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015).
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