Textile firm
Shekhawati Poly-Yarn is entering capital market with its initial public
offer (IPO) of 1.2 crore equity shares on December 27. The company aims
to raise Rs 36 crore through IPO at fixed price of Rs 30 a share.
The issue will constitute 54.54% of the fully diluted post issue equity share capital of the company.
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Shekhawati is presently engaged in
manufacturing of texturised and twisted yarn. Now it proposes to
commence manufacturing of Knitted Fabric from Texturised Yarn, being one
of the objects of the proposed public issue.
Issue proceeds are proposed to be used
for buying new 30 twisting machines and installation of new 30 knitting
machines; buying corporate office at an estimated cost of Rs 325 lakh
and working capital requirements.
After this expansion, the company will
have 35 machines for twisting yarn with capacity of 4,620 MTPA, 30
machines for knitting yarn with 1,980 MTPA and 20 for texturising yean
with capacity of 27,400 MTPA.
Hem Securities Limited is the book running lead manager to issue.
src: MC