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Friday, June 09, 2006

Abhishek Mills files for IPO

Kolhapur based Abhishek Mills, AML, has filed a draft red herring prospectus, DRHP, for its initial public offer, IPO with Sebi. The company intends to offer 41 lakhs equity shares of Rs 10 each for cash at a price to be discovered through the book-building route. The issue would constitute 29.27% of the post issue paid-up capital of the company.

Abhishek Mills is promoted by Ramchandra Mohite, Annasaheb Mohite and Dr Anjali A Mohite is part of R. M. Mohite Group. Company has presence in two segments, yarn manufacturing through its 100% export oriented spinning unit and in construction.

Abhishek entered in the field of textiles in the year 1999 and has effectively managed export business by targeting the finer count premium segment, where there are comparatively fewer players due to stringent quality parameters and high level of technology. It has created a place for itself by having an export base in European countries like Germany, Italy, Switzerland and other countries including Vietnam, Bahrain, Hong Kong, Russia, Korea and Mauritius.

Abhishek Mills Ltd currently has 33120 spindles producing 100% combed cotton yarn and can manufacture yarn with finer counts in the range of 40s to 120s.

Annasaheb Mohite, Managing Director, Abhishek Mills, said, “We believe that the exports in premium segment of the fine yarn are growing which is our core activity. The potential markets for the same are still untapped. Apart from this we intend to set up an integrated yarn dyed shirting fabric project for growing overseas and domestic and overseas market.”

Mohite added further, “We are also planning to increase our spinning capacity by adding another 12000 spindles to meet additional requirement of yarn for our captive consumption.” He added that the total project cost is estimated at around Rs 21878 lakh to be financed through debt of Rs 14990 lakh, which is already tied up through various banks and balance through internal accrual and IPO proceeds.

The company ventured into construction business in the year 2000 and undertook job work for Morbe dam (earthern) project on Dhavri River, from M/s R.M. Mohite & Co., a group firm, which is a category Class IA registered contractor with PWD, GoM and pursuing government contracts for last 30 years.

For nine months period ended December 2005, out of the aggregate turnover of Rs 4625.63 lakh (Rs 462.5 million), sales turnover from its textile operations was around Rs 3010.09 lakh (Rs 301 million) and from our construction business was around Rs 1615.54 lakh (Rs 161.5 million).

The book running lead manager for the issue is UTI Bank and the registrar to the Issue is Intime Spectrum Registry.

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