House of Pearl Fashions Ltd issue to open on Jan 16

Mumbai, Jan 8 (UNI) House of Pearl Fashions Ltd is entering the capital market on January 16 with an initial public offering of 5,984,994 equity shares of Rs ten each through a cent per cent book-building process.

The Company's Chairman Mr Deepak Seth told mediapersons, ''The price band for the issue has been fixed between Rs 525 to Rs 600 per equity share. The issue closes on January 23. At least 50 per cent of the net issue to the public shall be alloted on a proportionate basis to Qualified Institutional Buyers (QIBs).'' Further, not less than 15 per cent of the net issue will be available for allocation on a proporationate basis to non-institutional bidders and not less than 35 per cent of the net issue would be for allocation on a proporationate basis to retail bidders, subject to valid bids being received at or above the issue price, he said.

''The Company intends to use a part of the net proceeds of the issue to increase the production capacity of the group from 20 million pieces per annum to 40 million pieces per annum. This also includes acquisition of an existing knitted garment manufacturing facility by Pearl Global Ltd, the Company's subsidiary in India in Gourgaon, Haryana and establishment of a new knits manufacturing facility by Norp Knit Industries Ltd, the Company's subsidiary in Dhaka, Bangladesh. The equity shares are proposed to be listed on the BSE and NSE,'' he added.

UNI