KSL plans Rs 600 cr expansion
To raise Rs 300 cr through IPO or GDR
| The company plans to raise Rs 300 crore either by floating IPO in the domestic market or issuing GDR in the overseas market. |
| "We will be raising Rs 300 crore from the market in order to fund our ongoing textile expansion," said Saurabh Tayal, chairman of KSLIL. |
| The company has raised half the funds required through debt. The company is implementing the expansion project with a debt-equity ratio of 1:1 and had already tied up with a consortium of banks to raise fund through debt. |
| UCO Bank, Syndicate Bank, Indian Overseas Bank and Oriental Bank of Commerce will provide a loan of Rs 50 crore each while Allahabad Bank will give Rs 100 crore. |
| Tayal said that whichever market, IPO/GDR, they decide upon will surely hit the market in one and half-month. |
| The company intends to utilise the funds raised at its Kalmeshwar mill near Nagpur. |
| The expansion project aims for additional 1.50-lakh spindles for manufacturing yarn, knitting and fabric processing capacity and garments. |
| At present the total spinning capacity is 10,000 tonne per annum (TPA) with 65,000 spindles, 19,000 TPA of knitting and 1,000 TPA of processing. |
| KSL has four manufacturing units at Nagpur,Mumbai, Bhilad in Gujarat and at Dadra and Nagar Haveli. |
| When asked about the Rs 400 crore 'Express City' project undertaken by Reward Real Estate Company, a subsidiary of KSL, Tayal said, "The project is moving smoothly and will be completed with a stipulated time of three years". |