Monte Carlo eyes R400 cr from IPO; issue opens Dec 3

By: and |
Mumbai | Published: November 26, 2014 12:20:53 AM

Branded apparel maker Monte Carlo Fashions will launch its initial public offering...

Branded apparel maker Monte Carlo Fashions will launch its initial public offering (IPO) on December 3, three people with direct knowledge of the matter told FE requesting anonymity. The company intends to raise about R400 crore from the offer by selling 54.33 lakh shares, constituting 25% of the post offer equity capital.

The Ludhiana, Punjab-based Monte Carlo is expected to announce its price band on Wednesday (November 26), five business days prior to the launch of the issue as per Sebi rules.

“There were certain issues with the valuation that was halting the marketing drive too. But everything is clear now and we are ready to launch the issue,” said one person familiar with the development.

The offer includes partial stake sale by Samara Capital through its investment firm Kanchi Investments, and 15% stake dilution by the promoter and promoter group. Kanchi Investments has offered to sell 9.46% stake (20.58 lakh shares) of the total 18.51% stake it holds. Kanchi Investments’ holding will drop to 9.04% post the offer.

Sebi had cleared the offer on September 12, and the issue was earlier slated to hit the markets in end of September to early October. However, the offer was delayed due to discussions over valuations.

“Everything was in place and the IPO was set to launch. But the promoters and the investment bankers had some differences of opinion over valuations…there was a gap between what the investors were willing to offer and what the promoters were expecting,” said another person familiar with the matter.

SBI Capital Markets, Axis Capital, Edelweiss Financial Services and Religare Capital Markets are managing the issue.

Monte Carlo is the fifth company on the main board to hit the bourse this fiscal. Four companies – Sharda Cropchem (R351 crore), Snowman Logistics (R197 crore), Wonderla Holidays (R181 crore) and Shemaroo Entertainment (R120 crore) – have tapped capital markets so far in FY15. An additional 23 issues cumulatively worth R173 crore were listed on the SME platform, taking total IPO fund raising for FY15 to R1,024 crore.

IPOs worth more than R7,000 crore is waiting to hit the markets. Seven companies already have requisite approval from Sebi and another 12-15 companies have either filed their drafts or are considering tapping the capital markets. These companies have the potential to raise an estimated R4,500 crore.

New kid on the ipo block

To raise about R400 crore from the offer by selling 54.33 lakh shares or 25% of the post offer equity capital

To announce price band on Wednesday (November 26)

Offer includes partial stake sale by Samara Capital and 15% stake dilution by the promoter and promoter group

Merchant bankers include SBI Capital Markets, Axis Capital, Edelweiss Financial Services & Religare Capital Markets

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