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Wednesday, May 17, 2006

Gangotri Textiles fixes price band of Rs 41-46 for FPO

Gangotri Textiles, the Coimbatore-based manufacturer of ‘Tibre’ brand of trousers and other textile products, proposes to enter the capital market on May 18 with a public issue of equity shares of Rs 5 each through book building process to raise funds aggregating Rs 55 crore. The issue closes on May 23.

The company has fixed the price price band of Rs 41-46 for the FPO.

SBI Capital Markets Ltd and Keynote Corporate Services Ltd are the BRLMs for the issue and Intime Spectrum Registry Ltd is the registrar.

The public issue is to part finance its expansion-cum-integrated production projects involving spinning, weaving, processing and garment facilities.

It will partly fund an expansion project of Rs 351 crore. The majority part comes in the form of term loans from different bankers. The company plans to put around Rs 140 crore in the weaving project and spinning will take around Rs 150 crore.

The company will be investing Rs 8 crore in garments, which will enhance the company's production capacity from 1000 garments to 4000 garments per day. The company expects the whole project to be completed by October 2007.

The company has also tied up with Switzerland based Trailer Ltd, which will help the company in establishing itself as an international brand. Trailer has got its own retail stores in several countries of Europe. They are present in 250 multi-front outlets in Europe, where Gangotri lacked European marketing experience. Trailer will promote the company's brand and help take it from national to international level.

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