Koutons to tap capital market

Mumbai, Sep 7: New Delhi-based apparel manufacturer and retailer Koutons Retail India Limited (KRIL) today fixed a price band of Rs 370-415 per share for its initial public offering (IPO) opening on September 18.

Addressing a press conference here today, KRIL chairman DPS Kohli said that the issue of 35.24 lakh equity shares opens on September 18 and will close on September 21, and constitute 11.54 per cent of the post-issue capital of the company.

The IPO of 35.34 lakh equity shares of Rs 10 each is through 100 per cent book building process. It consists of a fresh issue of 260,897 equity shares and an offer for sale of 916,542 equity shares by selling shareholders.

The company, which has received an investment from UTI Ventures, would remain stakeholders even after the dilution of equity during the IPO, Mr Kohli said.

Koutons proposes to utilise the net proceeds of the issue to fund its plans of setting up of the Exclusive Brand Outlets (EBO) of the company, establish a new integrated manufacturing capacity and improvement of its information and technology network, Mr Kohli said.

Koutons proposes to open 140 EBOs for its brands ''Koutons' and ''Charlie Outlaw'' in the next two years. The planned EBOs will be company leased and would be either company operated or franchisee operated.

UNI