Nitin Spinners to invest Rs150 cr in expansion

02 Jan '06

1 min read

Nitin Spinners Limited is gearing up for a Rs150 crore expansion.

Company will enter the capital market with its IPO of Rs49 crore through the book building process expected to unveil on January 6, 2006.

The company's IPO, whose price band has been fixed at Rs18 to Rs21 per equity share of Rs10 each closes on January 12.

This is a Bhilwara – based company that produces combed and carded yarns and is now planning to grow its potential by 50400 spindles for cotton yarn production and 12 knitting machines.

The produced yarn is used to manufacture apparels, under-garments, denims, terry-towels, medical fabrics, furnishing and industrial fabrics.

Company is also planning to install a 8.18 MW power plant.

It is a chief exporter of its products to Australia, the USA, South America, and Europe as well as Asia.

The company's financial performance in the last two years has been good with its total income rising from Rs60.5 crore in FY 03 to Rs81.74 crore in FY 05.

Out of the total issue size of Rs49 crore, Rs9 crore is the promoter's contribution, while reservation for permanent employees of the company stands at Rs2.5 crore.

The net issue to the public is Rs37.50 crore.

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