Hayleys MGT Knitting Mills PLC, Sri Lankan manufacturer of knitted fabrics, will float a rights issue to raise SL Rs. 914 million, which will be utilized for expansion and to strengthen the firm's balance sheet, the company has announced.
Subject to approval from shareholders and Colombo Stock Exchange (CSE), the Board of Directors of the company have proposed to issue two new ordinary shares for every ordinary share held, at a value of SL Rs. 9 per share.
According to the company statement, its current capital is SL Rs. 527.856 million, held in the form of 50.781 million ordinary shares.
The Board of Directors, in their filing with the CSE, said Hayleys MGT Knitting Mills will utilize the proceeds from the proposed rights issue to invest in procuring machinery for manufacturing of higher value fabrics, in introducing energy saving initiatives, in upgrading its Enterprise Resource Planning (ERP) system, and to strengthen the company's Balance Sheet.
With an annual turnover in excess of US$ 50 million, Hayleys MGT Knitting Mills is a leading weft knitted fabric supplier to top global brands such as George, Decathlon, Nike and M&S.
Accredited by Marks & Spencer, NEXT, BHS, TESCO, Boden, Mothercare and Adams & Woolworth, the company has production capacity of 1 million kg of knitted fabrics per month.
Hayleys MGT knitted fabric product range includes Single Jersey, Fleece, Interlock, Pique, Rib, Polar Fleece/Micro Fleece, including Antipil and special knitted fabric finishes such as Moisture Management, Real Cool Cotton, Gold and American Finishes. The fabric range also includes printed and Lycra based knitted fabric and jacquard collars.
Fibre2fashion News Desk - India