SPL Industries Ltd to arrange Rs 60cr from IPO

27 May '05

2 min read

leading knitwear and garment maker spl industries announced that it has filed a red herring prospectus with sebi, for ipo to raise rs 60cr to enhance its production capacity.

the company intends to raise investment for its expansion with a public issue of 90 lakh equity shares of rs 10 each for cash at a premium through the 100 per cent book-built route.

the funds will be in two parts; first part of nearly rs 35cr would be invested on the expansion and remaining for working capital expenses.

the total funds for expansion will be of rs 41.83cr. idbi has approved a loan of rs 10cr under the tuf scheme, of which rs 5cr has been spend.

additionally, the company also plans to set up new facilities for yarn dyeing and the production of woven garments.

the company plans to accelerate its production capacity, as the company has received larger order from gap and jc penney along with the other clients.

joint md, vijay jindal stated that the company is also producing woven textiles and home textiles. the latter segment had already notched rs 2 crore in sales and the company is creating capacities for it.

"with the knitwear segment now open to medium and large companies, small players that benefited under the quota system would now feel the heat,” he concluded.

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