OWM set to go public

Oswal Woollen Mills Limited (OWM), a company of the Nahar Group of Companies is expanding its existing capacities by raising funds through a public issue and has obtained Sebi's nod for the issue of up to 8,320,000 equity shares of Rs. 10 each through the book-built route.

"The issue comprises a net issue to the public of up to 8,305,000 equity shares and reservation of up to 15,000 equity shares for subscription by employees. The net issue will constitute 25.05 per cent of fully diluted post-issue capital of the company," said Jawahar Lal Oswal, managing director of the company.

Kamal Oswal,director said, "We also propose to increase capacities to manufacture additional 125,000 pieces of wool-based knitted and hosiery garments together with additional 4,784 spindles for worsted woollen yarn and also for increasing the denim fabric weaving capacity to 20 million meters per annum from 15 million meters per annum. As a backward integration approach to denim fabric weaving, we are also setting up a cotton spinning plant with a capacity of 14,400 spindles and 2,160 rotors."

The company endeavours to strengthen its position in the in the retail sector and it plans to further augment its existing reach of 'Monte Carlo Exclusive Brand Outlets' by opening additional 106 outlets by Fiscal' 09 from the existing 44 outlets as of now.

Further, OWM is contemplating selling denim fabrics to ready-made denim garment manufactures in domestic and international market. From 2007 autumn and winter season, the company would start production and marketing of fine micron pure merino blended knitted products for children in the age group of one to eight years.

Under the current expansion plan, it proposes to set up a co-generation power plant with an installed capacity of 7.5 Mw, which is expected to meet the full requirements of power for integrated denim operations post expansion.

OWM, incorporated in 1949 is a part of the well known industrial conglomerate Nahar Group which also consists of Nahar Spinning Ltd, Nahar Industrial Enterprises Limited, Nahar Exports Ltd and Nahar Capital & Financial Services Limited based at Ludhiana in Punjab.