Pradip Overseas eyes up to Rs 116-cr through its IPO

MUMBAI: Home linen products-maker, Pradip Overseas, plans to raise up to Rs 116.6-crore through its initial public offering (IPO) slated to hit the market on March 11.

The company has fixed the price-band of its IPO at between Rs 100 and Rs 110 and is eyeing raising Rs 116.6-crore at the upper-end of the price-band and Rs 106-crore at the lower-end.

The issue closes on March 15. "The proceeds of the issue will be used to part-finance a manufacturing facility at its textile SEZ which the company is setting up near Ahmedabad. The remaining will be used for working capital purposes," Pradip Overseas' President, Amit Thakkar, told reporters here today.

"The facility should be ready by March 2011," Thakkar said.

The company which presently has a manufacturing capacity of 136.5-million metres per annum, plans to enhance it to 169.50-million metres per annum in order to meet expanding demand.

Pradip Overseas, which is setting up a SEZ over 110-hectares, has already acquired 85-hectares and will use one-third of the SEZ for its own operations.