Textiles seem to be the stocks to watch out for. SP Apparels earlier had acquired a private equity placement of $8 mn (approx. Rs. 36 crores) from global insurance major New York Life Insurance’s investment arm, New York Life Investment Management, from its NYLIM India Fund. The Rs. 200-crore company is now planning to hit the capital markets. SBI Capital Markets and IL&FS InvestSmart are the advisors to the issue, which may come out within the next six months. The company intends to raise around $82 mn (Rs. 370 crores) from the listing and divest 25% stake to the public, having previously offload around 10.71% stake to NYLIM India Fund. S P Apparels is expanding rapidly, having earlier acquired the domestic men's brand Crocodile in April last. It has also chalked up Rs. 370-crore, Phase-II expansion programme, covering its backward linkages in spinning, knitting, wet-processing, garmenting and retailing, including the cost of acquisition of the brand. Presently, the company exports 90% of its production; clientele includes major global garment retailers such as Mothercare, Tesco, Disney Stores, H&M, Benetton and Dunnes Stores. It is consistently posting 25-30% growth in the last three years has achieved a sales turnover of Rs 200 crore during 2005-06. Its sales during the half-yearly period ended September 2006 stood at Rs 120 crore.
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