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Mandhana Industries lists at Rs 131 per share

19 May 10 09:54 AM
Money Control
Mandhana Industries lists at Rs 131. The issue price of the IPO was fixed at Rs 130 per share at higher end of the price band of Rs 120-130. Mandhana Industries a vertically integrated textile and garment manufacturing company, entered the Indian Capital Markets with an initial public offering (“IPO”) of 83,00,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process (“Issue”).

The Rs 107 crore initial public offering (IPO) opened for subscription during April 27-29 and was subscribed 6 times. The Company’s major business segments include Textiles and Garments. The focus is to capitalize on the vertical integration of operations which would lead to reduction in cost of raw materials and enable the Company to achieve quality control and thereby result into higher profit margins from the garment business.

The Company intends to utilize the proceeds of the issue towards setting up of new garment manufacturing facility at MIDC, Tarapur Maharashtra. Mandhana’s total garment manufacturing capacity is expected to increase from 36 lacs pieces per annum to 83 lacs pieces per annum subsequent to the expansion. Mandhana would also utilize the proceeds of the issue to expand its weaving facility at MIDC, Tarapur, Maharashtra, margin money for working capital, general corporate purpose and meeting issue expenses.

Edelweiss Capital Limited and Axis Bank Limited are the Book Running Lead Managers to the Issue and Link Intime India Pvt. Ltd. is the Registrar to the Issue