HoP Fashions to raise fund through IPO

Chennai, Jan 11 (UNI) House of Pearls Fashions Limited (HoP Fashions), a multinational ready to wear apparel company today announced entry into the capital market to fund expansion plans, involving an investment of Rs 360 crore.

Addressing a press conference here, HoP Fashions Chairman Deepak Seth said the company intended to use part of the proceeds from the issue to increase the production capacity from the present 20 million pieces per annum to 40 million pieces per annum.

The company, which was operating in three business streams of manufacturing, marketing and distribution and sourcing of garments had drawn plans to enter the retail market in India.

"We are planning to enter the retail market in a very niche segment, focusing on youth fashion. It would be not only on garments but also on other accessories," he said.

He said the company was entering the capital market with an initial public offering of 5,984,994 equity shares of Rs 10 each through a 100 per cent book building process and the price band was fixed between Rs 525 and Rs 600 per equity share.

The issue opens on Janury 16 and closes on January 23, he added.

The expansion plan included the acquistion of an exisiting knitted garment manufacturing facility at Gurgaon in Haryana and establishment of a new manufacturing facility by Norp Knit Industries Ltd, the company's subsidiary in Bangladesh.

The company had also drawn plans to buy retail chains or brands in the United Kingdom and the United States of America to foray into the retail business in these countries.

He said of the Rs 360 crore required for expansion, Rs 276 crore would be raised through the IPO and the balance would be debt.

UNI