Koutons to raise Rs 146 cr in IPO
The leading apparel manufacturing firm says the price has been fixed at Rs 370 to Rs 415 a share and the offer will open on Sept 18 and close on Sept 21.Updated: Sep 10, 2007, 20:25 IST
Leading apparel manufacturing company Koutons Retail India Ltd on Monday said it was expecting to raise up to Rs 146 crore through a initial public issue.
"We are expecting to raise about Rs 140 crore through this 100 per cent book building process by issuing 35.24 lakh equity shares of face value of Rs 10," Koutons Retail India Chairman D P S Kohli told reporters here.
The price has been fixed at Rs 370 to Rs 415 a share and the offer would open on September 18 and close on September 21. The company is likely to raise upto Rs 146 crore through the offer, if calculated at the upper end of the price band.
The initial public offering (IPO) comprises 26.08 lakh fresh shares and the promoters would sell 9.17 lakh shares of the company.
"Post issue of the IPO, the promoters' stake would be diluted to 66.35 per cent," Kohli added.
"From the raised money, we are planning to invest Rs 87 crore in setting up new brand outlets, establishing integrated facility, improving IT network and purchasing plant and machinery to increase the production capacity," Koutons Chief Finance Officer Ajay Mahajan said.
The remaining amount would be used for the company's general corporate purposes, Mahajan said.
The offering by Koutons Retail follows the successful fund raising by another player Vishal Retail, which had received overwhelming response for its IPO recently.
"Koutons have 999 exclusive brand outlets (EBO) in 395 cities in the country. It operates 18 manufacturing facilities and 14 warehouses in Gurgaon," Kohli said.
The company proposed to open 140 new EBOs in the next two years.
In the last fiscal, the company sold 92 lakh pieces of garment through its brands - 'Koutons' and 'Charlie Outlaw' and had a turnover of Rs 403 crore, Mahajan said, adding the company currently has 8.44 lakh sq ft of retail space in the country.
The company recently acquired 13,000 sq mt land in Gurgaon from Haryana Urban Development Authority for Rs 30 crore.
The company is also planning to launch two new brands - 'Les Femme' and 'Koutons Jr' for the females and children respectively.
Asked about its expansion plans, Kohli said that the company was open for manufacturing plants in other parts of the country also, but declined to comment further citing SEBI regulations.