Chiripal Industries Ltd (CIL), a city-based textile company, has filed its Drafted Red Herring Prospectus (DRHP) with Securities Exchange Board of India (SEBI) for initial public offer (IPO) to raise close to Rs 120 crore. The amount is about half of the company's total planned capital expenditure of Rs 231 crore in the coming financial year.
CIL intends to issue 14.2 million shares of Rs 10 face value in the price band of Rs 80 to Rs 90 per share. With this IPO, the company will join the league of other listed companies of the Chiripal group - Nova Petrochemical and Nandan Exim Ltd.
"Company expects around Rs 110 to Rs 120 crore through its public issue although the final figure of the offering is not yet decided," said director, Chiripal Industries Ltd, Vishal Chiripal.
Company is in process of finalising its pre-IPO placement, subject to which issue size may be reduced. Out of the issue proceeds, the company will utilise around Rs 53 crore to fund its capital expenditure plan and will invest Rs 6 crore in its subsidiary Chiripal Lifestyle Ltd, to finance the first phase of its 20 retail outlets 'ConneXions'.
CIL will also utilise part of the raised fund to acquire 43% stake in Vraj Integrated Textile Park Ltd - a Rs 111 crore integrated textile park. The remaining funds will be utilised as working capital for the company. According to company officials, capital expenditure of Rs 231 crore will be funded through Rs167 crore term loans, Rs 53 crore issue proceeds and remaining from internal accruals.
The proposed capital expenditure plan includes setting up a new yarn dyeing facilities, fabric dyeing facilities and weaving facilities and expansion of its POY, FDY, textured yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities.
CIL will also invest around Rs 30 crore in setting up 7.5 mw lignite-based power plant to cut down on its power cost.
At present, the company has a processing capacity of 85.80 million meters per annum. For the financial year ending March 2007, CIL registered a turnover of Rs381 crore with net profit of Rs 20 crore. For the six months ending September 2007, for the FY 2008, company's turnover was Rs 224 crore with profit of Rs 14 crore.
CIL intends to issue 14.2 million shares of Rs 10 face value in the price band of Rs 80 to Rs 90 per share. With this IPO, the company will join the league of other listed companies of the Chiripal group - Nova Petrochemical and Nandan Exim Ltd.
"Company expects around Rs 110 to Rs 120 crore through its public issue although the final figure of the offering is not yet decided," said director, Chiripal Industries Ltd, Vishal Chiripal.
Company is in process of finalising its pre-IPO placement, subject to which issue size may be reduced. Out of the issue proceeds, the company will utilise around Rs 53 crore to fund its capital expenditure plan and will invest Rs 6 crore in its subsidiary Chiripal Lifestyle Ltd, to finance the first phase of its 20 retail outlets 'ConneXions'.
CIL will also utilise part of the raised fund to acquire 43% stake in Vraj Integrated Textile Park Ltd - a Rs 111 crore integrated textile park. The remaining funds will be utilised as working capital for the company. According to company officials, capital expenditure of Rs 231 crore will be funded through Rs167 crore term loans, Rs 53 crore issue proceeds and remaining from internal accruals.
The proposed capital expenditure plan includes setting up a new yarn dyeing facilities, fabric dyeing facilities and weaving facilities and expansion of its POY, FDY, textured yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities.
CIL will also invest around Rs 30 crore in setting up 7.5 mw lignite-based power plant to cut down on its power cost.
At present, the company has a processing capacity of 85.80 million meters per annum. For the financial year ending March 2007, CIL registered a turnover of Rs381 crore with net profit of Rs 20 crore. For the six months ending September 2007, for the FY 2008, company's turnover was Rs 224 crore with profit of Rs 14 crore.
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