The issue had opened for subscription with an IPO on June 30, 2008 to raise Rs 144.18 crore. A price band was between Rs 15-18 per equity share of face value of Rs 10 each. The issue closed for subscription today, Friday July 4, 2008.
The proceeds from the issue will be utilized to set up a integrated textile unit and a garment manufacturing plant at their facilities located at Khamgaon, Ghatanji & Makkapur in Maharashtra. The invested will also fund the company’s foray into retail outlets which it plans to set up pan India.
In order to ensure success in their expansion plans, the initial promoter of Birla Cotsyn (India) Limited Yash Birla group had entered in a 50:50 Joint venture with the P.B.Bhardwaj Group, This JV will enable both the partners to combine their resources and expertise and carry on the business of manufacturing, marketing and distribution of the products, which will enable their presence felt, in India as well as in international markets.
The company is in the process of setting up a 36,000 cotton spindle yarn manufacturing unit at Malkapur. Commercial production in Phase I has commenced.
In Phase II, the company has set up an Open End rotor based Cotton yarn manufacturing facility having capacity of 1,728 rotors, which has since become operational. In this Phase the Company is also setting up a weaving unit of Cotton Grey Fabric with 114 Looms.
Moving forward with a fully integrated manufacturing process, Birla Cotsyn plans to manufacture finished fabric by setting up a Dyeing and Processing facility with an installed capacity of 50,000 meters per day in Phase III.
Project Highlights
* Expansion of Integrated Textile Project at Khamgaon and Malkapur.
* Manufacture of finished cloth by setting up of a Dyeing & Processing unit .
* Setting up of a Ready made Garment Manufacturing facility for men & women clothes.
* Establish Retail Outlets across the country .
* MEGA Project status granted by Government of Maharashtra.
This issue has been graded by CARE and has been assigned the "IPO Grade 3".
Allbank Finance Limited is the book running lead manager to the issue.
Nexgen Capitals Limited, Saffron Capital Advisors Private Limited and Chartered Capital and Investment Limited are the co-book running lead managers to the issue.
Adroit Corporate Services Pvt. Limited is the registrar to the issue.