Mumbai: Koutons Retail India and Consolidated Construction Consortium (CCCL) will hit the capital markets with their initial public offers tomorrow, aiming to raise a total of about Rs335 crore from the public.
Koutons, the largest apparel chain in India with 999 outlets, is looking to raise up to Rs146 crore from the public issue of about 35.2 lakh shares. The company has fixed the price band for the IPO at Rs370-415 a share.
It plans to use the IPO proceeds to open more retail outlets and set up a manufacturing plant.
Real estate developer CCCL is offering 37 lakh shares in the IPO at a price band of Rs460-510 a share and could raise up to Rs189 crore from the public issue.
The company plans to use the proceeds to finance acquisition of construction infrastructure, for investment in subsidiaries, expenditures towards skill and management development centre, repayment of loans and for general corporate purposes.
The final IPO price would be determined through a 100% book-building process in both issues. Both IPOs would be open for subscription on 18-21 September.
JM Financial is the lead manager to the Koutons’ IPO with Karvy Investor Services being the co-book running lead manager. For CCCL issue, the the book running lead managers are Enam Securities and Kotak Mahindra Capital Company while the co-book running lead manager is Spark Capital Advisors (India).
CCCL is an ISO 9001:2000 certified provider of integrated turn-key construction services in the industrial, commercial, infrastructure and residential sectors of the construction industry.
Koutons ranks at the top among 23 major players in the branded apparel segment, and has 999 outlets. The company designs, makes and retails apparel under Koutons and Charlie Outlaw brands. It plans to open 140 more outlets the next few years.
The company has already raised over 186 crore through private equity and its investors include UTI Ventures, Argonaut Ventures, Passport India Investments (Mauritius) and Fidelity India.
Koutons chairman D P S Kohli said in a statement: “We believe we are well positioned to capture considerable growth opportunities in Indian apparel manufacturing and retail sector.
The key strength of our company lies in wide network of exclusive brand outlets with low-cost sourcing capabilities, unique brand positioning, design and merchandising expertise, experienced and efficient management and IT Infrastructure.”
A report on Indian retail says the total organized market is currently worth Rs55,000 crore, with 39% held by clothing and accessories, and 11% by food and grocery.