Birla Cotsyns Rs 144 crore IPO to fund retail foray

Written by Shaheen Mansuri | Mumbai, Jun 20 | Updated: Jun 22 2008, 05:13am hrs
Birla Cotsyn Ltd, part of the Yash Birla Group, will soon announce an initial public offering (IPO) to raise Rs 144 crore to fund its expansion plans. The company, which is into cotton and synthetic yarn production, wants to enter the retail segment. The price band for the forthcoming IPO of the company is fixed at Rs 50-80. The company, which is a 50:50 joint venture between the Yash Birla Group and the P B Bhardwaj Group, will dilute 26.5% of its equity stake to hold 33% stake each after the completion of the IPO. Yash Birla, chairman, Yash Birla Group told FE, We shall expand our existing manufacturing capacity at our facility at Khamgaon, Ghatanji and Malkapur. We shall enter the retail space with our own domestic brand in readymade garments for men and women. Initially, we have plans to set up 20 retail stores across metro and tier II cities.

However, the company has chalked out a plan to set up an integrated textile unit estimated at a cost of Rs 289 crore at the existing facilities and nearly Rs 31 crore will be utilised for foraying into the retail segment.

Currently, Birla Cotsyn is exporting its products to various countries in the Middle East, African and European countries with a share of 25% of its total production and will mop up its export present to 60% in phases. KK Baheti, president and CEO, Birla Cotsyn added, In the previous fiscal, we had a turnover of Rs 63.13 crore and are expecting over 100% increase in revenues in the next two years with our new projects.