Denim fabric maker Suryalakshmi to raise funds

27 Dec '05

2 min read

Yarn and rope dyed denim maker Suryalakshmi Cotton Mills Ltd informed that the company has decided to raise Rs 34.99 crore by issuing 14,28,300 equity shares on a preferential basis to UTI Venture Funds at a price of Rs 245 per share.

The company plans to utilise the funds to partly finance its expansion plans. This represents 10.7 per cent of the expanded (post issue) equity share capital.

The Board of Directors (BOD) took a decision to this effect at it meeting; the Secunderabad-based company informed the stock exchanges.

The issue is subject to the required shareholder, statutory and regulatory approvals in accordance with the SEBI guidelines, it said.

The company has already received sanction from IDBI for a term loan of Rs 70 crore under technology upgradation fund scheme for its ongoing expansion projects at Denim Division (upto 40 mn mtrs.) and its spinning division at Amanagallu, it said.

The ongoing expansion work is on schedule at Ramtek, Amanagallu and in the garment division of its subsidiary, it added.

Andhra Pradesh based Suryalakshmi Cotton Mills, with 6,000 spindles to manufacture world class cotton and blended yarns, with a vision and commitment to establish the company as a leading enterprise in the textile industry. Company's customers all over the world acknowledge the range of denim as simply world class-a reflection on our obsession for quality that we try to sustain and surpass.

The Economics Times

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