Birla Cotsyn IPO to open on 30 June

Birla Cotsyn IPO to open on 30 June
Comment E-mail Print Share
First Published: Fri, Jun 27 2008. 04 48 PM IST
Updated: Fri, Jun 27 2008. 04 48 PM IST
PTI
Hyderabad: Birla Cotsyn (India) Ltd (BCIL), a Yash Birla Group company, is entering the capital market with a Rs144.18 crore initial public offering (IPO).
Proceeds from the issue would be used to fund two units that the company is setting up at its existing facilities in Maharashtra.
The company has fixed a price band of Rs15 to Rs18 per equity share of face value of Rs10 each. The price band is 1.5 times of the face value and the cap price is 1.8 times of the face value.
The 100% book-building issue opens on 30 June and and closes on 4 July.
Talking to media, Birla Group Finance Director P V R Murthy said proceeds from the issue will be utilised to set up an integrated textile unit and a garment manufacturing plant.
“The IPO would also fund the firm’s foray into retail outlets which it plans to set up across the country,” he said.
Murthy said the initial promoters of BCIL had entered in a 50:50 joint venture with the P B Bhardwaj Group. The JV would enable both partners to combine their resources, expertise and carry on the business of manufacturing, marketing and distribution of the products.
“It also aims to tap the domestic as well as international markets,” he said.
“The textile project at Malkapur has been granted the ‘mega project´ status by the Maharashtra Government and would get fiscal benefits over the next seven years,” he added.
Moving forward to a fully integrated manufacturing process, the company plans to make finished fabric by setting up a dyeing and processing facility with an installed capacity of 50,000 meters per day in Phase III, he said.
Comment E-mail Print Share
First Published: Fri, Jun 27 2008. 04 48 PM IST