SEL Manufacturing Company IPO opens for bidding

MUMBAI: The bidding for the initial public offering of SEL Manufacturing Company opened Thursday. The price band of the issue is fixed at Rs 80-90 for issue size of 41, 38,410 shares of face value of Rs 10 each.

At the lower end of the band, the company would raise Rs 33.11 crore and at the upper band it will raise Rs 37.25 crore. The issue closes on July 31.

Apart from making a pre-IPO placement of 7,60,800 shares to EXIM Bank at Rs 65 per share, the company has made placement of another 5 lakh shares to Nirmal Kotecha at Rs 75 per share.

SEL Manufacturing is planning to expand its capacities in spinning, knitting and garment manufacturing at a total cost of Rs 184.5 crore. The debt of Rs 103.7 crore is fully tied up under technology upgradation fund scheme.

Besides this pre-IPO equity participation, EXIM Bank has also sanctioned a term loan of Rs 25 crore for the expansion project.

Its profitability increased to Rs 23.6 crore in 2006-07 (Apr-Mar) at a CAGR of 174.47% from Rs 3.14 crore 2004-05 (Apr-Mar).

The total income of SEL rose to Rs 201.8 crore in 2006-07 (Apr-Mar) from Rs 64.34 crore in 2004-05 (Apr-Mar) at a compounded annual growth rate of 77.13%.

UTI Bank is the mandated book running lead manager for the IPO.