Vigneshwara Exports to raise Rs 67 crore

Mumbai, May 30 : Vigneshwara Exports Ltd, the largest exporter of bed linen to Europe, has proposed to set up a textile process and weaving house with an estimated investment of over Rs 200 crore.

Briefing newsmen here today, Mr K M Poddar, Director, Vigneshwara Exports said to part finance this investment, the Company is set to enter the capital market with its initial public offering(IPO) of 47.60 lakh equity shares of Rs 10 each through book building process.

The price band for the issue -- which is to open on June 7 and closes on June 13, 2006 -- has been fixed at Rs 121 to Rs 140 per equity share of Rs 10 each. IPO seeks to mobilise over Rs 66.64 crore at the upper end of the price band.

Replying to a question, Mr Poddar said the company has raised Rs 5.40 crore through private placement and proposes to part finance the project through a term loan of Rs 130.75 crore, while the remainder is to come from the proceeds of the IPO.

The issue would constitute 46.21 per cent of the total post issue paid up equity capital of the company.

Karvy Investor Services is the Book Running Lead Manager and Bigshare Services is the Registrar to the issue.

UNI