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Tuesday, March 14, 2006

Kewal Kiran Clothing IPO opens on March 20

Kewal Kiran Clothing, leader in denim wear in the country with successful brands such as `Killer', `Lawman', `Easies' and `Integriti', proposes to enter the capital market on March 20, 2006, with an issue of 31,00,000 equity shares of Rs 10 each to part finance its expansion plan, according to a release.

The issue is through 100% book building process and the price band has been fixed at Rs 250-275. The issue closes on March 23, 2006.

The issue would constitute 25.15% of the fully diluted post issue paid-up capital of the company and the shares are proposed to be listed on BSE and NSE.

The company proposes to set up new manufacturing facilities and expansion of its distribution network by opening additional exclusive outlets. The total investment outlay is estimated at Rs 72 crore (Rs 720 million).

Kewal Kiran Clothing is an integrated apparel manufacturer and in the business of designing, manufacturing, branding and selling of ready-made apparels and other accessories under various brands.

In order to have more brand visibility and better reach to the customers with pan India presence and also to expand its reach and serve additional customers in existing and new geographies, the company intends to set up additional 116 exclusive retail outlets in addition to the existing 27 retail outlets across the country called -``K-Lounge''.

The company has four manufacturing facilities at Dadar (Mumbai), Goregoan (Mumbai), Vapi (Gujarat) and at Daman (Union Territory) with a total annual capacity of two million pieces. The distribution channel comprises of a mix of their own stores (K-Lounge) and a network of National Chain Stores, NCS, and Multi Brand Outlets, MBO. As on December 31, 2005, the company has 27 K-Lounge stores and also present at 48 locations of National Chain Stores.

Kewalchand Jain, Hemant Jain, Dinesh Jain and Vikas Jain who have over 20 years of experience in this industry have promoted the company.

The consolidated restated revenues for the year ended March 31, 2005 was Rs 268.42 million as compared to Rs 253.90 million for the year ended March 31 2004. Consolidated restated profit after tax was Rs 38.27 million for the year ended March 31, 2005 as compared to Rs 38.79 million for the ended March 31, 2004.

Enam Financial Consultants is the book running lead manager for the issue and Intime Spectrum Registry is the registrar.

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