Active Stocks
Wed Mar 27 2024 15:27:26
  1. Tata Steel share price
  2. 152.50 0.13%
  1. Sun Pharmaceutical Industries share price
  2. 1,603.00 0.38%
  1. Power Grid Corporation Of India share price
  2. 270.10 0.04%
  1. HDFC Bank share price
  2. 1,446.00 1.34%
  1. ICICI Bank share price
  2. 1,086.40 0.22%
Business News/ Market / Stock-market-news/  Monte Carlo plans IPO, Samara Capital to divest 9.5% stake
BackBack

Monte Carlo plans IPO, Samara Capital to divest 9.5% stake

The offer for sale, which is expected to hit the market in September, will constitute 25% of the post paid-up equity share capital of the company

Monte Carlo executive director Sandeep Jain said the company will continue to focus on the growth of its cotton and cotton-blended apparel to establish pan-India presence.Premium
Monte Carlo executive director Sandeep Jain said the company will continue to focus on the growth of its cotton and cotton-blended apparel to establish pan-India presence.

Mumbai: Monte Carlo Fashions Ltd. (MCFL) on Wednesday said the company plans to launch a public issue of 54.33 lakh equity shares, including an offer for sale by promoters group and private equity (PE) firm Samara Capital.

The offer for sale, which is expected to hit the market in September this year, will constitute 25% of the post paid-up equity share capital of the company.

“Our PE investor Samara Capital has decided to divest 9.5% stake and promoters will dilute 15% stake through offer for sale," Monte Carlo executive director Sandeep Jain told reporters.

In June 2012, Samara Capital, a Mauritius based India focused private equity firm, through its affiliate, KIL, acquired a stake in MCFL and currently holds 18.51% of the pre-offer capital of the company acquired at an investment amount aggregating to Rs175 crore. KIL will hold 9.04% after selling 20,58,026 equity shares in public issue.

The company expects that the listing of the equity shares will enhance visibility and brand image among existing and potential customers and provide liquidity to the existing shareholders, Jain said.

Launched in 1984 as an exclusive woollen brand by Oswal Woollen Mills Ltd. (OWML), Monte Carlo, Jain said will continue to focus on the growth of its cotton and cotton-blended apparel to establish pan-India presence.

“As part of our growth strategy, the company has a target of establishing 275 ‘Monte Carlo exclusive brand outlets’ by the end of fiscal 2017. We seek to penetrate further in the western and southern regions of India," he said.

Jain said they will continue to focus expansion in tier-I cities in north India, along side focusing expansions in tier-II cities in north, east and central India and tier-I cities of south and west India by opening additional ‘Monte Carlo exclusive brand outlets.

Jain said they are also open to strategic investments and acquisitions of businesses in the apparel industry may act as an enabler of growing business. “We believe that the efforts at diversifying into new segments of the branded apparel industry or new markets can be facilitated by investing in similar business opportunities or making acquisitions of existing brands," he said. PTI

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Aug 2014, 08:21 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App