EXIM Bank picks up 5 pc in SEL

MUMBAI: EXIM Bank on Thursday said it has picked up five per cent stake in Ludhiana-based textile company SEL Manufacturing (SEL) for Rs 4.94 crore through a pre-IPO private placement of shares.

SEL is coming out with an IPO by July-end with 53.99 lakh equity shares of Rs 10 each to part finance its Rs 184.57 crore spinning, knitting and garment manufacturing capacity expansion programme.

"Exim bank has picked up 7.6 lakh shares in the company at Rs 65 per share. This equity stake will be five per cent of the fully-diluted paid up capital of SEL, post-IPO," SEL Managing Director Neeraj Saluja said here.

He said Exim Bank has also sanctioned a term loan of Rs 25 crore for the expansion project.

Saluja said SEL has four manufacturing facilities - two in Ludhiana and two in Baddi. Post-expansion, annual spinning capacity of the company would go up to 74,256 spindles, 40 lakh pieces of garments and 4,950 tonnes of knitted fabrics.

SEL, which is in the process of acquiring under liquidation Mangla Cotex, also Ludhiana-based, had recorded a total income of Rs 201.8 crore last fiscal.

The company has representative offices in Russia and Dubai. Almost half of its turnover came from exports last year.