Olympic Cards mulls IPO to raise Rs 43 crore

Olympic Cards Ltd, a manufacturer and supplier of invitation cards, is to come out with its first public issue. The company has said it is planning to raise around Rs 43 crore through the proposed issue, which will be used to set up a greenfield facility and to upgrade existing facilities.

The company's chairman and managing director H Noor Mohamed told Business Standard that the company had filed the Draft Red Herring Prospectus (DRHP) with the regulator and was planning to make the issue by mid-February 2011.

“We are planning to dilute around 47 per cent through the proposed issue,” he said. According to information available on the company's website, promoter’s holding is around 95 per cent.

 

The company would use the proceedings to set up a new manufacturing unit, at Periapalayam on the outskirts of Chennai on 6.5 acres of land. Currently, its plants are spread over three different locations.

With the funds, it plans to raise production capacity by at least five times, ease liquidity, retire debts and increase its marketing and R&D expenditure.

The company's average production is 150,000 cards per day. Apart from the wedding cards and greeting cards, the company offers a wide range of products in the form of envelopes, letter heads, business cards, calendars, notebooks, account books, etc.