Tuesday, July 1, 2008

Birla Cotsyn IPO Subscribed 0.06 Times - July 1, 2008

The IPO of Birla Cotsyn was subscribed 0.06 times on Monday i.e the first day of the issue. The issue received total of 4.31 million bids, while 410,900 bids were received at cut-off price. The issue will close on Jul. 04, 2008.

The price band for the issue was fixed at Rs 15 to Rs 18 a share of face value of Rs 10 each. The company intends to raise Rs 1,441.8 million at the cap price of the price band.

The company plans to utilize the proceeds to set up a integrated textile unit and a garment manufacturing plant at the facilities located at Khamgaon, Ghatanji & Makkapur in Maharashtra. It will also fund the company's foray into retail outlets. The company is setting up a readymade garment-manufacturing unit.Along with this it is entering the retail garment sector by establishing 20 retail outlets across the country. The company is setting up a garment manufacturing facility.

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