Sudar Garments IPO gets good response on Day One, subscribed 52%

The IPO by the Sudar Garments Limited received an encouraging response from investors on the very first day itself and was subscribed 52% by 5 pm today, according to NSE website. The Company received total bids for 47.44 lac equity shares as against 90.88 lac shares on offer in the price band of Rs 72 to Rs 77. The Issue closes on Thursday, February 24. Ashika Capital Limited is the sole Book Running Lead Manager for the Issue and Link Intime India Pvt Ltd is the Registrar to the Issue.

The Company, engaged in the manufacturing of garments for Mens wear, Womens wear and Kids wear, proposes to utilize a part of the net proceeds of the issue for expansion of the existing apparel manufacturing unit located in Khalapur Taluka of Raigad District near Mumbai. The investment in expansion is estimated at Rs 26.29 crore. The additional working capital requirement of Rs 27.30 crore is on the basis of additional funds required after the implementation of expansion plans of the company. The expansion plans are expected to be completed in the FY 2011-2012.

Further, Sudar Garments Ltd intends to have a total of 25 Retail outlets in major cities of South India and towards this, it has earmarked a sum of Rs.2.40 crore .Out of these, the company proposes to open 10 own retail outlets on leased premises and balance 15 retail outlets proposed to be operated on franchisee basis. It has finalized the locations for the proposed own outlets in the Chennai city. All these retail outlets shall operate under its brand name “Glory to Glory” “St. Paul” and “Majesty”.