Flexituff International to raise Rs 100 cr from IPO

AHMEDABAD: Flexituff International Ltd (FIL), manufacturer of flexible intermediate bulk containers (FIBCs), today said it would be raising Rs 100 crore from their initial public offer (IPO).

"Though it is a tough time for coming out with an IPO (capital markets are under pressure), we are very positive about our company's performance," FIL Chief Operating Officer Saurabh Kalani told reporters here.

He said the firm's products were highly technical and specifically engineered and customised for every client.

"We plan to raise Rs 100 crore from our IPO in the price band of Rs 145-155. The proceeds from the IPO would be used for expansion of our existing manufacturing facility at Pithampur, Madhya Pradesh," Kalani said.

"Around Rs eight crore would be used for setting up of a dripper project in Kashipur, Uttarakhand. The company has decided to enter into the drip irrigation sector with this project as the sector is growing fast and was likely to become popular in the coming days among farmers," he added.

FIL is entering the capital market, offering 6,750,000 equity shares, including offer for sale of up to 2,250,000 equity shares by investment firm Clearwater Capital Partners (Cyprus) Ltd, of face value of Rs 10 each.

The issue will open on September 29 and close on October 4 for QIB bidders, and on October 5 for other bidders.

FIL manufactures FIBCs, geo-textile fabric and ground cover and special PP (polypropylene) bags, among others.

FIL sales increased from Rs 367 crore in 2009-10 to Rs 578 crore in 2010-11. Its product output rose from 31,000 tonne in 2009-10 to 43,000 tonne in 2010-11, CEO Mahesh Sharma said.