SP Apparels expects to raise Rs 239 crore via IPO

By: | Published: July 27, 2016 6:10 AM

Tamil Nadu-based manufacturer and exporter of knitted garment SP Apparels has priced its initial public offering (IPO) between Rs 258 and Rs 268. The company expects to raise Rs 239 crore, when calculated at the upper end of the price band.

Tamil Nadu-based manufacturer and exporter of knitted garment SP Apparels has priced its initial public offering (IPO) between Rs 258 and Rs 268. The company expects to raise Rs 239 crore, when calculated at the upper end of the price band.

The IPO comprises a fresh issue of equity shares aggregating `215 crore and an offer for sale (OFS) of 9 lakh shares. Private equity player New York Life Investment Management India Fund which at present holds a 10.5% stake in the company will make a partial exit by selling half its stake.

According to Sebi guidelines, 50% of the shares are reserved for qualified institutional buyers (QIBs), 15% for high net worth individuals and 35% for retail investors. Up to 60 % of the QIB portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds. Five per cent of the QIB category, excluding the anchor investor portion, has been reserved for mutual funds on a discretionary basis.

For the financial year FY16, the company reported a net profit of `37.85 crore on a total revenue of `541 crore. The company proposes to utilise the proceeds of the issue to repay of debt, open new stores for the sale of its “Crocodile” brand products and modernise manufacturing plants. The book running lead managers of the offer are Motilal Oswal Investment Advisors Private Limited and Centrum Capital Limited.

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