Richa Knits to raise Rs 27 crore via IPO to part-fund its expansion

Mumbai, Sep 8 (UNI) Richa Knits, a Gurgaon-based manufacturer of knitted fabric and readymade garments, today announced its intentions of making it's debut in the capital market through it's initial public offering on September 13, to raise about Rs 27 crore to part-fund its expansion capability.

Briefing newspersons here, the managing director Mr Susheel Gupta, said the IPO envisages issue of 90 lakh equity shares of Rs 10 each for cash at a premium of Rs 20 per equity shares.

Replying to a question, Mr Gupta said the expansion project is expected to cost Rs 63 crore, of which IPO proceeds to account for Rs 27 crore, while term loan from Indian Overseas Bank stands at Rs 33 crore and the remainder through internal accruals.

Post-IPO, the promoters stake in the company will come down to 56.14 per cent of the paid up capital.

KJMC Global Market (India) is the Sole Lead Manager and Intime Spectrum Registry is the Registrar to the Issue.

UNI SN WD SKB1657