Mumbai: India’s apparel maker Cantabil Retail India Ltd said on Friday it has fixed a price band of Rs127 to 135 per share for its initial public offering to raise up to Rs105 crore.
Cantabil Retail is in the business of designing, manufacturing and retailing readymade garments and accessories, with 411 retail outlets spread across India.
The proceeds will be used to set up a new manufacturing facility, expand retail operations and part pay debt.
The company intends to spend Rs320 million towards setting up the new manufacturing facility which will have a capacity of 3 million units per annum, said Chairman and Managing Director Vijay Bansal.
It plans to spend Rs250 million on retail expansion, Rs300 million as additional working capital and Rs200 million to repay debt, Bansal added. Its current debt stands at Rs600 million.
“We plan to open 181 retail stores this year, one-third of which will be company-owned and two-thirds will be franchise-owned,” Bansal said.
SPA Merchant Bankers is the book running lead manager to the issue, which opens on Sept 22 and closes on 27 September.