Koutons to mop up Rs 145 cr via IPO

New Delhi, Sept 10 (UNI) Apparel maker Koutons Retail India Ltd today said it will raise Rs 145 crore through its initial public offer (IPO), with price band fixed at Rs 370 to Rs 415 a share.

The net proceeds of the issue will be utilised to set up exclusive brand outlets of the company and establish a new integrated manufacturing facility, company's Chairman and Managing Director DPS Kohli told reporters here today.

''Besides, we will use the money to purchase plant and machinery to scale up the finishing and manufacturing capacity and improve information and technology network,'' he added.

The company proposes to open 140 exclusive brand outlets for its brands 'Koutons' and 'Charlie Outlaw' over the next two years.

It has been allotted about 13,000 square feet of land on a freehold basis by Haryana Urban Development Authority at Gurgaon.

Koutons Retail proposes to venture into the capital market with a public issue of 35,24,439 equity shares of Rs 10 each through 100 per cent book building process. It consists of a fresh issue of 26,07,897 equity share and an offer for sale of 9,16,542 equity shares.

The offer opens on September 18 and closes on September 21, which constitutes 11.54 per cent of the post-issue capital.

JM Financial Consultants is the lead manager to the offer.

The company's total income for 2006-07 (Apr-Mar) stood at Rs 403.6 crore and net profit was at Rs 34.4 crore against Rs 158.3 crore and Rs 13.1 crore in 2005-06 respectively.

UNI