SCIL drafts prospectus with Sebi for IPO

18 Nov '05

2 min read

Shirt Company (India) Limited (SCIL) a Mumbai based garment exporter and manufacturer of apparels, has filed its draft Red Herring Prospectus with the Securities & Exchange Board of India (SEBI) to enter the capital market with a public issue of 25,00,000 equity share of Rs. 10 each with cash at a premium to be decided through book-built process

Of the total issue of 25,00,000 equity share, not more than 50 percent (12,50,000 shares) has been reserved for allotment to qualified institutional buyers (QIBs) on proportionate basis, of which 5 percent of equity shares shall be reserved for allocation to mutual funds.

Of the balance, 375,000 shares or 15 percent of the net offer has been reserved for non-institutional investors while 875,000 shares or 35 percent of the net offer is reserved for retail investors. The net offer to public would constitute 25 percent of the fully diluted post issue paid up equity capital.

The proceeds of the issue would be utilized in expanding the existing garment-making capacities of the company and setting up a textile processing unit.

The company is also planning to foray into exclusive retail stores for its branded products and marketing its products and retire the existing bank borrowings.

Shirt Company (India) Limited

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