OWM plans for RS 170 cr IPO by June
Nahar Group company, Oswal Woollen Mills Limited plans raise Rs 150-170 crore through its Initial Public Offer by last week of June to fund its expansion plans.
By PTI |
LUDHIANA: Nahar Group company, Oswal Woollen Mills Limited plans raise Rs 150-170 crore through its Initial Public Offer by last week of June to fund its expansion plans.
"We will go public either in third or last week of June," Punjab-based OWM's Director (Corporate Finance and Tax) Dinesh Gogna told PTI here.
Within 3-4 days, the company would resubmit its Draft Red Herring Prospectus (DRHP) with market regulator SEBI, he said.
The company is looking to raise Rs 150-170 crore with a public issue of 83.2 lakh shares.
Proceeds of this issue would be used to partly finance its major expansion programmes of Rs 253 crore, which includes expansion of new production capacities and opening 123 'Monte Carlo' brand outlets in the country by 2009, with an investment of Rs 55 crore.
"With the public issue, the promoter's share in OWM will come down by 25 per cent," he said.
The company was planning to launch the public issue in September last year, but was postponed citing uncertainty in equity market.
It would also set up a new cotton spinning unit with an investment of Rs 102 crore.
OWM would also spend Rs 32 crore on enhancing the manufacturing capacity of Monte Carlo brand of garments from 7.5 lakh pieces per annum to 8.75 lakh pieces per annum.
Another Rs 32 crore would be spent on expanding the production capacity of worsted woollen spinning mill from 26,248 spindles to 31,032 spindles. The company has also proposed to spend Rs 32 crore in setting up a captive power generation plant of 7.5 MW, he added.
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