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| Jindal Cotex lists @ Rs 77 |
| Announcement / Corporate Sep 22, 2009, 19:23 IST |
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Jindal Cotex Limited, a Ludhiana-based textile company engaged in the manufacture of polyester and acrylic yarns, which had a successful IPO, got listed Rs 77 – Rs 2 above the upper end of the price band.
The company’s IPO, launched on August 27, 2009 with a public issue of 1, 24, 53,894 equity shares of face value of Rs. 10/- each with price band of Rs. 70 to Rs. 75 per share, was subscribed 2.19 times.
The HNI portion was subscribed by 5.9 times, retail 3.09 times and QIB segment 0.65 times.
Saffron Capital Advisors Private Limited is the Book Running Lead Manager for the issue, while Bigshare Services Private Limited is the Registrar to the issue which was through a 100% Book Building Process.
The proceeds of the issue will be used mainly for entering into technical textile space through investment in wholly owned subsidiaries viz., Jindal Medicot Limited (JML) and Jindal Specialty Textiles Limited (JSTL). JML is setting up facilities to manufacture Medical Textile Products like Absorbent Bleached cotton Wool & its products and Cotton Crepe Bandage like Stretch Bandage, Crepe Bandage Cloth mainly catering to healthcare and cosmetic sector.
The total capacity of the plant will be 5000 TPA. JSTL is setting up facilities to manufacture PVC Laminated products for various applications like Frontlit Banner Fabric, Backlit Banner Fabric, Inflatable Fabric for Boats etc, Tent Fabric, Tarpaulin fabric, Truck Siders, mainly catering to outdoor media advertising industry, recreation and army applications with an estimated annual capacity of 60 Million Sq. Meters. Both these facilities will be set up in District Una in the State of Himachal Pradesh. Further, Jindal Cotex is also expanding its capacity by setting up of a new facility for manufacturing cotton yarn, yarn dyeing and garmenting.
Technical textiles are specialized textile products manufactured for industrial usage. The market for technical textiles is expected to touch $14 billion by 2012, though it is less than $8 billion today. Technical textiles have the potential to attract investments worth Rs. 5000 crore and generate 3, 00,000 additional employment by 2012. The Government of India has also taken number of steps to promote its growth and as per National Textile Policy that priority will be accorded for their growth and development of technical textiles industry.
About Jindal Cotex Limited:
An ISO 9001: 2008 certified, Ludhiana-based company, Jindal Cotex Limited is engaged in the manufacture of acrylic and polyester yarns, including polyester viscose, polyester cotton, and combed and carded yarns, used in the making of apparels, suiting and knitted fabrics.
The Company has a current installed capacity of 23,472 spindles for acrylic, cotton-blended and polyester yarns. They have also successfully installed and commissioned a Suzlon-make wind electric generator of 1250KW capacity in Jaisalmer district of Rajasthan.
Company is setting up a new unit at Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana for manufacturing of cotton yarn by setting up 50,400 spindles along with a dyeing unit of 6TPD and garment manufacturing facility having a capacity of 3000 pc per day. This project has been granted the status of Mega Project.
The technical textiles project in the Subsidiaries will be set up in Distt Una, Himachal Pradesh. By setting up these units in Himachal Pradesh, the subsidiary companies will be entitled for various exemptions and concessions, main being exemption from Income Tax and Excise Duty. Further expansion projects of the company and proposed projects of technical textiles in subsidiaries are covered under Technology Upgradation Fund Scheme (TUFS) thereby entitling for the interest and capital subsidy.
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