Hanung Toys to raise Rs 90 cr, IPO opens today
Soft toys and home furnishing manufacturer, Hanung Toys and Textiles Ltd on Thursday said it will raise Rs 90 crore through initial public offer (IPO) to fund its upcoming integrated textile facility in Uttaranchal.
By PTI |
NEW DELHI: Soft toys and home furnishing manufacturer, Hanung Toys and Textiles Ltd on Thursday said it will raise Rs 90 crore through initial public offer (IPO) to fund its upcoming integrated textile facility in Uttaranchal.
With a price band of Rs 85 to 95 per share, the company proposes to issue 95 lakh shares of Rs 10 each through book building process.
At the lower band the toy company will raise about Rs 80 crore, while at the higher band it expects to collect Rs 90.75 crore.
After allowing for reservation of the 5 lakh shares for employees, the net issue to the public would constitute 90 lakh shares, which constitutes 35.73 per cent of the post issue paid up capital of the company.
Post issue, promoters holding would come down 60.31 per cent.
ADVERTISEMENT
The net proceeds of the IPO will go towards setting up of Rs 168 crore unit, which has a processing capacity of 105,000 metre a day for home furnishing purpose, Hanung Toys and Textile CMD A K Bansal told reporters here.He said, IPO proceeds will part finance its plan and the remaining will be through the term loan at 5 per cent subsidy under TUFS. The unit is expected to go upstream April next year.
The company would manufacture entire range of home furnishing items for both export and domestic market, he said adding major thrust would be export market.
The company, which has three factories in Noida, registered a turnover of Rs 150 crore and a net profit of Rs 12.97 crore for the year ended March 31, 2006. Hanung Toys's IPO closes on October 5 and is expected to be listed on the BSE and NSE after Diwali.
ADVERTISEMENT
By afternoon trade, the issue received bids for 11 per cent of the total IPO size.Currently, the company has three brands for the domestic market namely, Play-n-pets, Muskan and Splash and contributes around 10 per cent of its turnover for the fiscal 2005-06.
ADVERTISEMENT
Ninety per cent of the turnover is contributed by the export market with major business coming from the US and Europe.The company has tie up with all the major global retail majors.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
