Filament yarn maker JCT Ltd is planning to increase $25 million by either selling shares to private equity funds or through an FCCB issue to overseas investors. JCT is the Thapar Group's flagship company.
The sources stated that the company was in the advanced stage of talks with the prospective investors and that final decision would be taken in the next four-to-six weeks.
It is learnt that JCT is planning to place shares with overseas mutual funds at a premium to the current price. It stated that the funds would be utilised to part finance the company's expansion projects.
JCT, the Rs 600-crore textile company, is setting up a 100 percent synthetics fabrics plant to cater to the requirement of sportswear and leatherwear manufacturing companies.
The company is believed to have tied up with Nike, the world leader in athletic apparel, for supply of the product.
JCT share price has gained substantially in the current month, rising to Rs 14 today from Rs 11.4 on October 31, up 23%. The scrip, in fact, hit a 10% upper limit to end at Rs 14.3 on Monday, when the counter attracted large volumes of around 30-lakh shares, compared to four-lakh shares on the previous day.
They are setting up a full-fledged speciality fabrics facility with a capacity of 50,000 units per day. Sanjiva Jain, vice-president (finance), JCT stated that the project cost is estimated at Rs 60 crore. He also added that the company was planning a totalcapex of Rs 300 crore, which will be financed through Rs 100 crore FCCB/private placement and Rs 200-crore loan from banks.
Indian leading textile company JCT has two integrated textile facilities located in Phagwara (Punjab) and Sriganganagar (Rajasthan) with a combined production capacity of 1.25-lakh metres per day.
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