SEL Manufacturing IPO to open on July 26

New Delhi, July 23 (UNI) SEL Manufacturing Company Ltd, a vertically integrated textile multi-product company, today said it will issue an Initial Public Offer (IPO) of 41,38,410 equity shares of Rs 10 each through 100 per cent book building process at a price band of Rs 80 to Rs 90 per equity share.

The company plans to utilise the proceeds from the issue to expand its capacities in garment manufacturing, knitting and spinning at its Ludhaina plant at a total cost of Rs 184.57 crore.

Post implementation of the expansion project, the company will have spinning capacities of 74,256 spindles, 7.5 million pieces per annum of garments and 7,050 tonnes of knitted fabrics per annum.

The issue includes reservation of 2,06,920 equity shares for permanent employees, leaving a net issue to the public of 39,31,490 equity shares.

The issue will open on July 26 and close on July 31. The issue would constitute 27.20 per cent of the fully diluted post issue paid-up capital of the company with UTI Bank Ltd as the BRLM for the issue. Post issue, the promoters' share in the company will be diluted to 67 per cent.

The company also said EXIM Bank has become a strategic and financial partner in SEL Manufacturing by subscribing to 7,60,800 Equity Shares of Rs 10 each at Rs 65 per Equity Share.

Presently, majority of SEL's production of garments is exported to Russia and the UAE.

The total income of SEL has increased from Rs 64.34 crore in FY 05 to Rs 201.88 crore in FY 07 at a CAGR of 77.13 per cent.

UNI