Oswal gets SEBI nod for its IPO

By Staff
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Google Oneindia News

New Delhi, May 17 (UNI) Oswal Woollen Mills Ltd (OWM), maker and exporter of yarns and knitted garments, today said it has obtained SEBI's nod to come out with an IPO to expand its existing capacities.

The initial public offering will be for an issue of up to 83,20,000 equity shares of Rs 10 each through a book built route.

''The issue comprises of a net issue to the public of up to 83,05,000 equity shares and reservation of up to 15,000 equity shares for subscription by employees. The net issue will constitute 25.05 per cent of fully diluted post-issue capital of the company,'' OSW Managing Director Jawahar Lal Oswal said.

The flagship company of the Rs 1,900 crore Nahar Group plans to strengthen its position in the retail sector and further augment its existing reach of 'Monte Carlo Exclusive Brand Outlets' by opening additional 106 outlets by fiscal 2009 from the existing 44 outlets.

OWM is also contemplating selling denim fabrics to ready-made denim garment manufactures in domestic and international market.

''We also propose to increase capacities to manufacture additional 1,25,000 pieces of wool based knitted and hosiery garments together with additional 4,784 spindles for worsted woollen yarn and also increasing denim fabric weaving capacity to 20 million meters per annum from the present level of 15 million meters per annum,'' said Mr Oswal.

As backward integration for the denim fabric weaving, the company will also set up a cotton spinning plant with a capacity of 14,400 spindles and 2,160 rotors. The book running lead managers to the issue are UTI Bank Ltd and Motilal Oswal Investment Advisors Pvt Ltd.

UNI

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