Scotts Garments plans to raise over Rs 138 crore through IPO

MUMBAI: Scotts Garments today said the company is planning to enter the capital market to raise over Rs 138 crore to fund its future expansions.

The issue, whose price band has been fixed at Rs 130 to Rs 132 per equity share constituting 1,05,06,954 equity shares of the face value of Rs 10 each, will open for subscription on April 25 and close on April 29.

"We are planning to divest 25.80 per cent of our equity to raise about Rs 138 crore to part finance in setting up a trouser manufacturing unit in Bangalore, Karnataka, knitting and fabric processing unit in Kolhapur, Maharashtra, working capital of the new units and for general corporate purpose" Scotts Garments MD Naseer Ahmed told reporters here.

Out of the funds raised through the capital market, about Rs 93 crore will be for its Bangalore plant and Rs 45 crore for the Maharashtra plant, which will be set up with an investment of Rs 227 crore, he said, adding that the rest of the money will be through debt.

At present, the Bangalore-based garment export company has 24 manufacturing units in Karnataka and Tamil Nadu and 95 per cent of its products are exported mainly to the US, the UK, Europe and China.

The equity shares are proposed to be listed on both BSE and National Stock Exchange.

For the seven months ended October 2012, Scotts Garments has achieved a turnover of Rs 329.39 crore with a profit after tax of Rs 20.41 crore.

Keynote Corporate Services and Canara Bank Merchant Banking Division are the Book Running Lead Manager (BRLM) to the issue and Link Intime India is the Registrar to the Issue.