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Tuesday, February 07, 2006

KSL plans expansion, to raise Rs 300cr through IPO/GDR

KSL & Industries, KSLIL, the flagship company of Saurabh Tayal Enterprise, has decided to enter the capital market to part-finance its Rs 600 crore textile business expansion, reports Business Standard.

The company plans to raise Rs 300 crore (Rs 3 billion) either by floating IPO in the domestic market or issuing GDR in the overseas market.

“We will be raising Rs 300 crore (Rs 3 billion) from the market in order to fund our ongoing textile expansion,” said Saurabh Tayal, Chairman of KSLIL.

The company has raised half the funds required through debt. The company is implementing the expansion project with a debt-equity ratio of 1:1 and had already tied up with a consortium of banks to raise fund through debt.

UCO Bank, Syndicate Bank, Indian Overseas Bank and Oriental Bank of Commerce will provide a loan of Rs 50 crore (Rs 500 million) each while Allahabad Bank will give Rs 100 crore (Rs 1 billion).

Tayal said that whichever market, IPO/GDR, they decide upon will surely hit the market in one and half-month.

The company intends to utilise the funds raised at its Kalmeshwar mill near Nagpur.

The expansion project aims for additional 1.50-lakh spindles for manufacturing yarn, knitting and fabric processing capacity and garments.

At present the total spinning capacity is 10,000 tonne per annum, TPA, with 65,000 spindles, 19,000 TPA of knitting and 1,000 TPA of processing.

KSL has four manufacturing units at Nagpur, Mumbai, Bhilad in Gujarat and at Dadra and Nagar Haveli.

When asked about the Rs 400 crore (Rs 4 billion) ‘Express City’ project undertaken by Reward Real Estate Company, a subsidiary of KSL, Tayal said, “The project is moving smoothly and will be completed with a stipulated time of three years”.


Source: Moneycontrol

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