The initial public offer (IPO) of Sudar Garments was subscribed 1.55
times. The issue closed on Thursday, 24 February 2011. The IPO received
bids for 1.41 crore shares compared with 90.88 lakh shares on offer.
Non
institutional investors portion was subscribed 4.47 times, while the
qualified institutional buyers and retail individual investors
categories were subscribed 0.17 times and 2.27 times, respectively.
The company had offered shares in the price band of Rs. 72-77. The issue constitutes 49% of the fully diluted post-issue paid up capital of the company.
The
proceeds of the issue will be used for expansion of the existing
apparel manufacturing unit at Khalapur in Maharashtra, working capital
requirement and setting up retail outlets and brand building. Besides,
Sudar Garments plans to develop in-house capabilities for its marketing
activities
Sudar makes garments for men, women and children for the export and domestic markets.