Issue opens on March 11, 2010 and closes on March 15, 2010.
Pradip Overseas Limited, a manufacturer of Home Linien Products, has fixed the price band between Rs. 100/- and Rs. 110/- per equity share for an initial public offering (“IPO”) of equity shares of Rs. 10 each for cash at a price to be decided through a 100% book-building process. The Issue price is 10 times of the face value at the lower end of the price band and 11 times at the higher end of the price band. Pradip Overseas Limited to offer 1,06,00,000 equity shares aggregating to approximately Rs.116.6 cr at upper end of the price band and Rs. 106.0 cr at the lower end of the price band. The Bid/ Offer opens on March 11, 2010 and closes on March 15, 2010.
The company intends to use the proceeds of the issue to part finance a manufacturing facility in a textile SEZ, which is being developed by Pradip Overseas Limited itself and to part finance the incremental margin money requirement for working capital.
The Issue is being made through a 100% Book Building Process, wherein, subject to valid Bids being received at or above the Issue Price upto 50% (subject to mandatory allotment of minimum 10% of the Net Issue size to QIBs) of the Net Issue to the Public shall be available for allocation on a proportionate basis to QIBs (of which 5% will be available for allocation on a proportionate basis to Mutual Funds only, and Mutual Fund Bidders shall also be eligible for proportionate allocation under the balance portion available for the QIBs), atleast 15% of the Net Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders, atleast 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders and up to 5,00,000 Equity Shares shall be available for allocation on a proportionate basis to the Eligible Employees;
Anand Rathi Advisors Limited is acting as the sole Book Running Lead Manager to the Offer while Link Intime India Pvt. Limited is the registrar to the issue.
About Pradip Overseas Ltd.:
Incorporated in the year 2005, Pradip Overseas Ltd. (POL) is one of the few textile manufacturers with niche focus on Home Linen Products of both, wider width and narrow width. In addition to the sales in the domestic markets, POL’s products are being exported to markets in more than twenty countries (directly and indirectly). POL’s current manufacturing capacity is 136.50 million metres per annum with an average capacity utilization of 92%. The Company’s existing facility is located at Changodar near Ahmedabad in Gujarat. POL is enhancing its capacities to 169.50 million metres per annum in order to meet the expanding demand and further consolidate its position in the home linen market.
Pradip Overseas Ltd. aims to be a leading manufacturer in the global Home Linen Products market by creating global capacities through value chain linkages to cater to requirements of existing and potential clients with focus on large retail chains and institutional buyers and maximize return on investments.
Its product portfolio include Flat and fitted sheets for double and single beds both in Narrow Width and Wider Width, Quilt Covers and Pillow covers, Mattress Covers, Quilts Poly/Cotton Filled and Curtains.
Pradip Overseas Ltd. has been certified as conforming to the Quality Management System Standard ISO 9001:2008 covering the supply of dyed and printed fabrics. Further, the existing manufacturing facility at Ahmedabad, Gujarat has been granted authorization according to Oeko-Tex Standard 100 to use the Oeko-Tex mark for articles, namely bed sets (made-ups), woven fabrics made out of 100% cotton and polyster, bleached, reactive dyed, reactive printed, dispersed dyed and dispersed printed and pigment printed (inclusive sewing threads, buttons and zippers), produced by using material certified according to Oeko-Tex Standard 100. Adding to its impressive track record, the company also intends to file applications for obtaining similar certifications for its proposed manufacturing facility
