Jindal Cotex's IPO to hit mkt on Aug 27; to raise Rs 95cr
Press Trust of India / Mumbai Aug 21, 2009, 17:43 IST
Ludhiana-based textile company Jindal Cotex today said it is likely to raise Rs 90-94 crore through its initial public offer, which would hit the capital market on August 27.
Under the IPO, 1,24,53,894 equity shares of face value of Rs 10 each would be offered. The price band has been fixed at Rs 70-75 per share and the IPO closes on September 1.
The company expects to raise Rs 90-94 crore from the market, Jindal Cotex Managing Director Sandeep Jindal told reporters here.
"The funds of the forthcoming issue will be used mainly for entering into technical textile space through investment in wholly-owned subsidiaries - Jindal Medicot Ltd (JML) and Jindal Specialty Textiles Ltd (JSML)," Jindal said.
The issue is being made through a 100 per cent Book Building process wherein up to 50 per cent of the issue will be allocated to Qualified Institutional Buyers (QIB) on a proportionate basis.
JML will set up a Rs 88-crore facility to manufacture medical textile products like absorbant bleached cotton wool and cotton crepe bandage.
JSML will set up a Rs 151-crore facility to manufacture PVC laminated products with an estimated annual capacity of 60-million sq meters. Both facilities will be set up in Una district of Himachal Pradesh and will be completed by 2010.
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