Mudra Lifestyle to enter capital market on Feb 8

Chennai, Feb 5: The Mumbai-based Mudra Lifestyle Ltd, a leading taxtile goods manufacturer, is planning to enter the capital market on February eight with a public issue of 95,80,000 equity shares of Rs 10 each, through cent per cent book building process, Chairman and managing Director Murari Lal Agarwal said today.

Speaking to newspersons here Mr Agarwal said the price band had been fixed at Rs 75 to Rs 90 per equity share of Rs 10 each and the issue closes on February 14.

The company would utilise the fund raised through the IPO for expanding its manufacturing facilities by setting up a new integrated unit with all the process of yarn dyeing, weaving, process house and garment manufacturing near Bangalore and Tarapur with an estimated investment of Rs 177.40 million.

Out of this fund requirement, it proposes to utilise debt up to Rs 1008.40 million and it is fully tied up.

The company, established in 1997, started operations in 2002. Its total income had gone up from Rs 103.86 million in 2003-04 to Rs 452.61 million in 2004-05 and to Rs 1073.12 million in 2005-06. The profit after tax was Rs 2.13 million, Rs 26.47 million and Rs 90.77 million repectively.

During the first half of the fiscal ended September 2006, the company's total income was Rs 716.64 million and profit after tax Rs 65.37 million, he added.

UNI