KPR Mill to enter capital market to fund expansion

Chennai, July 31 (UNI) KPR Mill Limited, a vertically integrated apparel company is entering the capital market to set up a new knitting facility, expand its existing garment facility and set up a new design studio, involving a total investment of Rs 473 crore.

Addressing a press conference here today, KPR Mill Limited Managing Director P Natarajan said the company proposed to expand its fabric making capabilities by setting up a new knitting facility at the existing knitting facility at Ariyalur, near Coimbatore with an investment of Rs 26 crore.

In furtherance of its strategy to expand apparel business, the company proposed to strengthen its garment manufacturing capabilities by expanding the existing garment facility also located at Ariyalur, he said.

The company would also set up a fully computerised design studio, to enable the users to view clothing designs on a virtual 3D figure, he said.

The company also proposed to utilise the proceeds of the issue to expand the processing facility at Perundurai, he said adding that the company, during the year ended March, 2007, had exported 99.86 per cent of its readymade knitted apparel directly to international clients in Europe.

Once the Ariyalur facility comes into operation, by the end of this year, it would emerge as the largest integrated facility in the country for spinning and knitting operations.

Besides 35 foreign clients, the company had over 1000 regular domestic clients for yarn and fabric, he said.

The company would enter the capital market on August two, with a public issue of 5,912,100 equity shares of Rs 10 each, through 100 per cent book building process.

The price band for the issue was fixed at Rs 225 to Rs 265 per equity share and the issue would close on August seven, he added.

UNI