Birla Cotsyn raise Rs 144.18 crore via IPO

Mumbai, Jun 25 (UNI) Birla Cotsyn limited intends to raise Rs 144.18 crore through Initial Public Offer (IPO) at band range of Rs 15 to 18 to set up an integrated textile unit at Khamgaon, Ghatanji and Malkapur.

Addressing mediaperson here today its Co-Chairman Yashovardhan Birla said the Company has fixed brand of Rs 15 to Rs 18 per equity share of face value for Rs 10 each. The Company intends to raise Rs 144.18 crore at the cap price of the price brand. The issue will open on June 30 and closed on July four.

The fund will be utilised to set up a intergrated textile unit and a garment manufacturing plant at Khamgaon, Ghatanji and Malkapur in Maharashtra. Some part of the fund will also be invested in the Company's foray into retail outlets, which is planned to set up across the country.

Replying to a query Mr Birla said textile is strong industry with strong foundation. Cotton production in the country is better quality and cost of production is lower. The textile industry will continue to growth and we have coming with a longterm perspective.

''In order to ensure success in their expansion plans, we have entered in a 50:50 joint venture with the P B Bhardwaj Group.

This joint venture will enable both the parters to combine their resources and expertise and carry on the business of manufacturing, marketing and distribution of the products, which will enable their presence felt in India as well as in the international markets.

The Company is also in the process of setting up a 36,000 cotton spindle yarn manufacturing unit at Malkapur, phase I commercial production has commenced. In second phase, Company has set up an open end rotor-based cotton yarn manufacturing facilities having capacity of 1,728 rotors, which has since become operational.

The Birla Cotsyn have planned to manufacture finished fabric by setting up a dyeing and processing facility with an installed capacity of 50,000 meters per day in phase III, he added.

UNI ST GR VKG1448