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Friday, February 02, 2007

Lehar manufacturers plans IPO

Lawreshwar Polymers, manufacturers of Lehar footwear, is planning to enter capital markets through an initial public offer, IPO in order to raise about Rs 13.94 crore for expansion.

The funds would be used for installing 4 moulding machines to be imported from Italy, Ashika Capital President Rajendra Kanoongo said. Ashika Capital is the lead manager for the issue, reports The Economic Times.

Lehar footwear, which is mainly sold in northern region, would use the funds to open five showrooms in different parts of the country and to build a new corporate office in Jaipur, he said.

Out of the total 87.12 lakh issue of the company, 62 lakh would be for the public.

The issue price of Lawreshwar's Rs 10 per share is Rs 16. The issue opens on February 5 and closes on February 8.

Post issue, promoter's 100% share in the company would come down to 54.31%.

"The company would raise Rs 10 crore from the public. About Rs 3.94 crore would be promoter's share and UTI Bank would be giving a term loan of Rs 5 crore," Kanoongo said.

The company has been into manufacturing shoes and has entered into retailing at the begining of this year, he said.


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