MUMBAI: Chiripal Industries Ltd has filed a draft red herring prospectus with Securities and Exchange Board of India for an initial public offering of 14,216,700 equity shares of Rs 10 each, at a price to be decided through 100 per cent book-building process.
The issue comprises of a net issue to public of 12,100,000 shares of Rs 10 each, promoters' contribution of 1,916,700 shares of Rs 10 each and a reservation of up to 200,000 shares of Rs 10 each for employees. The net issue will constitute 34.57 per cent of the post issue paid up capital.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange.
The company is also considering a pre-IPO placement. If the placement is completed, the net issue to the public would be reduced to the extent of the share placement.
The company has appointed IDBI Capital Market Services as a book running lead manager.
Chiripal Industries, the flagship of Ahmedabad based Chiripal Group, has presence in the textile chain right from manufacturing yarn to readymade garments. Chiripal Industries operates in man-made fiber segment, specially in the polyester based products. The consolidated turnover of the company was Rs. 490.45 crore for the Fiscal 2007.
The manufacturing units of Chiripal Industries are located at Piplej in Ahmedabad.
To consolidate its operations, the company plans a capacity expansion program at a total cost of Rs 231.33 crore. The expansion includes that of its POY, FDY, texturised yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities. The company would also be setting up a new yarn dyeing facility, fabric dyeing and weaving facilities. A new 7.50 MW lignite based power plant would also be installed to cut down on its power cost.
Out of the total issue proceeds, Rs. 53.33 crore would be used to finance the expansion. The company would also avail term loans to the tune of Rs. 167 crore.
Chiripal Industries would be investing Rs 6 crore out of the issue proceeds in its subsidiary, Chiripal Lifestyle, to finance the first phase of 20 outlets.
Chiripal Industries would also be acquiring 43 per cent stake in Vraj Integrated Textile Park, an SPV incorporated by a group of entrepreneurs led by Chiripal Group for setting up an integrated textile park near Ahmedabad.
The issue comprises of a net issue to public of 12,100,000 shares of Rs 10 each, promoters' contribution of 1,916,700 shares of Rs 10 each and a reservation of up to 200,000 shares of Rs 10 each for employees. The net issue will constitute 34.57 per cent of the post issue paid up capital.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange.
The company is also considering a pre-IPO placement. If the placement is completed, the net issue to the public would be reduced to the extent of the share placement.
The company has appointed IDBI Capital Market Services as a book running lead manager.
Chiripal Industries, the flagship of Ahmedabad based Chiripal Group, has presence in the textile chain right from manufacturing yarn to readymade garments. Chiripal Industries operates in man-made fiber segment, specially in the polyester based products. The consolidated turnover of the company was Rs. 490.45 crore for the Fiscal 2007.
The manufacturing units of Chiripal Industries are located at Piplej in Ahmedabad.
To consolidate its operations, the company plans a capacity expansion program at a total cost of Rs 231.33 crore. The expansion includes that of its POY, FDY, texturised yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities. The company would also be setting up a new yarn dyeing facility, fabric dyeing and weaving facilities. A new 7.50 MW lignite based power plant would also be installed to cut down on its power cost.
Out of the total issue proceeds, Rs. 53.33 crore would be used to finance the expansion. The company would also avail term loans to the tune of Rs. 167 crore.
Chiripal Industries would be investing Rs 6 crore out of the issue proceeds in its subsidiary, Chiripal Lifestyle, to finance the first phase of 20 outlets.
Chiripal Industries would also be acquiring 43 per cent stake in Vraj Integrated Textile Park, an SPV incorporated by a group of entrepreneurs led by Chiripal Group for setting up an integrated textile park near Ahmedabad.
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