Birla Cotsyn fixes IPO price band

The company has fixed a price band of Rs 15 to Rs 18 per equity share of face value of Rs 10 each. The issue opens, which opens on June 30, will close on July 4. The proceeds from the issue will be utilized to set up a integrated textile unit estimated to cost Rs 320 crore and a garment manufacturing plant at their facilities located at Khamgaon, Ghatanji & Makkapur in Maharashtra. The proceeds will also fund the company's foray into retail outlets which it plans to set up pan India.

 

In order to ensure success in their expansion plans, the initial promoter of Birla Cotsyn (India) Yash Birla group had entered in a 50:50 joint venture with the PB Bhardwaj Group, This JV will enable both the partners to combine their resources and expertise and carry on the business of manufacturing, marketing and distribution of the products, which will enable their presence felt, in India as well as in international markets.

The textile project at Malkapur has been granted the "mega project" status by the State Government of Maharashtra and will get fiscal benefits over the next seven years. The company is in the process of setting up a 36,000 cotton spindle yarn manufacturing unit at Malkapur. Commercial production in Phase I has commenced.

In Phase II, the company has set up an open end rotor based cotton yarn manufacturing facility having capacity of 1,728 rotors, which has since become operational. In this phase, the company is also setting up a weaving unit of cotton grey fabric with 114 Looms. Moving forward with a fully integrated manufacturing process, Birla Cotsyn plans to manufacture finished fabric by setting up a Dyeing and Processing facility with an installed capacity of 50,000 meters per day in Phase III.