SKNL to file DRHP for Reid & Taylor's Rs 1,000 cr IPO in August

MUMBAI: Textile major, S Kumars Nationwide ( SKNL) aims to list its subsidiary Reid & Taylor and raise Rs 1,000 crore by end-this year and will be filing its Draft Red Herring Prospectus (DRHP) with Sebi in August, a top company official said.

SKNL will also spin-off its brand Belmonte into a subsidiary in which it will hold around 70-75 per cent and an overseas private equity firm, the balance, he said.

"We aim to list Reid & Taylor by November-December and plan to file our DRHP this month. We are targeting Rs 1,000 crore through this IPO," SKNL's Vice-Chairman and Managing Director, Nitin Kasliwal, told PTI here.

The proceeds of the IPO will be utilised for procuring new equipment, retail expansion and repayment of around Rs 400 crore of debt, he said.

On Belmonte, Kasliwal said that the company has short-listed a private equity firm from around half-a-dozen and hopes to seal the deal by September-October.

"We plan to spin-off Belmonte into a subsidiary in which the PE firm will hold around 20-25 per cent. We are eyeing a valuation of around USD 100 million here (for the 20-25 per cent)," Kasliwal said.

Belmonte and its allied businesses have grown substantially, the brand has become very popular and deserves to be a stand-alone company, he said.