Rupa & Co plans public offer, to diversify

Rupa & Co Ltd, the country's largest hosiery company today said it is planning to tap the capital market to raise resources for expansion and diversification into non-hosiery, readymade garments.

"We are planning to introduce non-hosiery readymade garments like jeans and other textile products as demand for these products is growing," Rupa & Co chairman P R Agarwala said here today.

In order to foray into the readymade garments and launch new products, the company is looking at raising resources from the capital market.

"We are planning to list our stock in the Mumbai Stock Exchange by April 2011 and we also intend to raise capital from public offer," Agarwala said after announcing that he had received the Master Brand Award by CMO Asia.

"We are working on this, but details have not yet been finalised so far," he said.

The Kolkata-headquartered hosiery and knitwear major is currently listed on the Calcutta Stock Exchange and Jaipur Stock Exchange, but there is no liquidity in the scrip.

The company will require at least Rs 100 crore to venturing into the textile readymade segment and for setting up a new dyeing and printing facility.

The company also has plans to launch its brand in South Asian and African countries.

Rupa registered a net profit of Rs 25.23 crore in 2009-10, up by 77 per cent over the previous year.

Despite, margin pressure from its raw material, cotton yarn, the company hopes to register healthy growth in topline and profits during the current fiscal.

The company's six months profit of 2010-11 was Rs 16.48 crore, higher by 60 per cent over the corresponding period last year.

The paid up equity capital of the company was Rs 7.95 crore with promoter's holding at 75 per cent.