Scotts Garments IPO opens today

Issue open between 25-29 April, price band Rs 130-132 a share

The initial public offering (IPO) of textile firm Scotts Garments has opened for subscription today. The company, which is planning to raise nearly Rs 140 crore, has priced the issue in a price-band of Rs 130 to Rs 132 a share.

The 10.5 million-share offering, which translates into a net issue of 25.8 per cent to the public, has received 2,400 bids in the first couple of hours of issue opening.

The issue will open on 25th April and close on 29th April.

The company plans to use the IPO proceeds to finance a portion of the cost of setting up a unit for Trouser manufacturing at Doddaballapur, Karnataka and Knitting and Fabric Processing Unit at Kagal-Kolhapur Maharashtra.

Some of the capital will also be used to meet margin money for working capital of the new units, for general corporate purposes and to meet Issue expenses, according to the company’s offer documents.

Rating agency CARE has given it an IPO Grade of 3, indicating average fundamentals, according to the company's offer documents.  

Canbank Venture Capital Fund picked up 1.74 million shares at a price of Rs.115 per share in the company in a pre-ipo placement.

Keynote Corporate Services and Canara Bank Merchant Banking Division are the merchant bankers handling the issue.