Abhishek Mills Ltd enters capital market on Feb 20

Mumbai, Feb 15 (UNI) Abhishek Mills Ltd (AML), a textile and infrastructure company, is entering the capital market on February 20 with a public issue of 41,00,000 equity shares of Rs ten each for cash at a premium to be decided through the 100 per cent book building process.

The price band for the issue has been fixed at Rs 95 to Rs 110.

The issue closes on February 26, 2007.

Compnay Chairman Mr Ramchandra Mohite told reporters,''Though this issue proceeds, Abhishek Mills a 100 per cent Export Oriented Unit(EOU), is setting up an integrated textile plant for yarn dyeing, weaving, fabric processing at Tamgaon, Kolhapur District in Maharashtra adjacent to its existing premises and additional spinning facilities at its existing leasehold land.

Out of the total expansion cost of Rs 218.78 crore, the company is raising term debt of Rs 149.90 crore, which is fully tied up under technology Upgradation Fund Scheme (TUFS) and Rs 68.88 crore will be raised from issue proceeds and internal accruals. Post expansion, the yarn produced from the spinning unit is intended to be completely utilised for its weaving operations.

AML intends to export the final product such as Yarn Dyed Shirting Fabric from the Expansion Project which is expected to start commercial production by January 2008.

''The Company has bagged another earthen dam project on sub contract basis to build near Amboli, Maharashtra. The total contract value is around Rs 1000 million to be executed over next four years,'' he added.

UNI