KPR Mill IPO opens tomorrow at a price band of Rs 225- Rs 265

New Delhi, Aug 1 (UNI) KPR Mill Ltd a vertically integrated apparel company, today said it will launch its Initial Public Offer (IPO) of 5,912,100 equity shares of Rs 10 each through a 100 per cent book-building process at a price band of Rs 225 to Rs 265 tomorrow.

KPR Mill with its operations located at Coimbatore, Sathyamangalam and Tirupur in Tamil Nadu has fixed the closing date for the issue on August 7, 2007.

The issue would constitute 15.69 per cent of the fully-diluted post issue paid-up capital of the company. The Book Running Lead Manager to the issue is Kotak Mahindra Capital Company Ltd.

KPR Mill has reserved atleast 60 per cent of the issue on a proportionate basis to Qualified Institutional Buyers (QIBs), out of which five per cent shall be available for allocation to Mutual Funds only.

The company has also set a provision that not less than 10 per cent of the issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30 per cent of the issue shall be available for allocation to Retail Individual Bidders.

The company said it proposes to utilise the net proceeds of the issue to fund plans for expansion of the existing garment facility at Arasur, near Coimbatore and set up a design studio at Arasur.

It also intends to construct an additional hostel facility at Arasur and undertake expansion of the processing facility at State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT), Perundurai.

The proceeds from the IPO will be invested in a new knitting facility at Arasur and create addition of balancing equipments for existing spinning facility at Sathyamangalam and general corporate purposes.

UNI