Garment manufacturer Mudra Lifestyle to come out with an IPO; price band at Rs. 75 – Rs. 90

Mudra Lifestyle Limited, a fabrics and garments manufacturer has fixed a price band of Rs. 75 – Rs. 90 for its initial public offer (IPO) of 9.58 mn equity shares. The funds raised will be utilized to finance the company's expansion plans. The IPO opens on Feb. 8 and closes on Feb. 14. The sole book running lead manager for the issue is SBI Capital Markets Limited. The shares are proposed to be listed on BSE and NSE.

The company will be investing over Rs. 177 crores to expand its manufacturing facilities by setting up a new integrated unit having all process of yarn dyeing, weaving and processing at Tarapur and garment manufacturing near Bangalore. Out of the total investments, the company proposes to utilize debt up to Rs. 100 crores. Mudra Lifestyle proposes to raise the balance amount through IPO.

The issue through 100% book-building process constitutes 26.62% of the post issue paid-up capital of the company. It has earlier made a pre-IPO placement of 1.92 mn equity shares to SIDBI Venture Capital Limited and State Bank of India. The net offer to public will constitute 25.29% of the post issue paid-up capital of the company.

For the fiscal year 2005-06, the company's total income was Rs. 107 crores, while PAT was Rs. 9 crores.

Read the article in The Economic Times.