Tubeknit Fashions fixes IPO price band at Rs 100-120 per share

Mumbai, Feb 15 (UNI) Tubeknit Fashions has fixed the price band of its initial public offering (IPO) between Rs 100 and Rs 120 per equity share of Rs 10 each through a 100 per cent book building process.

Announcing this here today, its managing director P Parthasarthi said the IPO, scheduled to open on February 21 and close on February 27, envisages issue of 520,000 equity shares of Rs 10 each and it would comprise 25.03 per cent of the fully diluted post issue paid up capital of the company.

The proceeds of the IPO, Mr Parthasarthi said, would be used for part-financing the expansion plans of the company including setting up of a cotton yarn spinning mill of 20,400 spindles at Tirupur in Tamil Nadu. It also envisages additional facilities for garment dyeing, printing, cutting, stitching and embroidery.

He said the expansion projects are estimated to cost Rs 40 crore, being financed partly through the proposed IPO and term loans from banks. The company also proposes to invest Rs 10 crore in a 50:50 joint venture with a partner from Switzerland, he said adding that this JV would manufacture garments primarily for exports.

In addition, it proposes to invest in developing and enhancing recognition of its brand in the domestic market, according to him.

The equity shares of the company are proposed to be listed on BSE and NSE.

Systematix Corporate Services and Religare Securities are the Book Running Lead Managers to the issue.

UNI