Indian IPO

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Thursday, February 08, 2007

Mudra Lifestyle IPO bids start today

Mudra Lifestyle, engaged in fabric weaving, processing, making garments and gradually moving towards garment manufacturing mainly in the men's shirts and lady's wear segments, is open for subscription with a public issue of 95,80,000 equity shares of Rs 10 each through 100% book building process.

The price band has been fixed at Rs 75 to Rs 90 per equity share of Rs 10 each and the issue closes on February 14, 2007.

The issue would constitute 26.62% of the post issue paid up capital of the company. The company has made a pre- IPO placement of 19,20,000 equity shares to SIDBI Venture Capital. And State Bank of India, leaving net offer to the public constituting 25.29% of the post issue paid-up capital of the company.

SBI Capital Markets is the sole BRLM for the issue and Bigshare Services is the registrar.

The issue is being made through the 100% book building process where upto 50% of the issue size shall be allocated to QIBs (including 5% of the QIB portion that would be specifically reserved for Mutual Funds) on a proportionate basis. Further, a minimum of 15% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and a minimum of 35% of the issue shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price.

The shares are proposed to be listed on BSE and NSE.

Early this month the company has raised a total of Rs 144 million through pre-IPO private placement of equity shares to SIDBI Venture Capital and the State Bank of India.

Mudra Lifestyle, a leading manufacturer and exporter of fashion fabrics and garments with modern manufacturing facilities, proposes to utilize the net proceeds of the issue to expand its manufacturing facilities by setting up a new integrated unit having all the process of yarn dyeing, weaving, process house and garment manufacturing near Bangalore and Tarapur with an estimated investment of Rs 1774.90 million. Out of this fund requirement, the company proposes to utilize debt up to Rs 1008.40 million and it is fully tied up.

Presently, Mudra Lifestyle sales fabrics in domestic as well as international markets. In addition, it also use the fabrics for internal consumption and at the same time sell it to other garment exporters. It exports garments and recently started with manufacturing garments for well known Indian brands. Its process house caters to its requirements and at the same time do outside jobs. At present the company has 177 automatic looms having capacity to produce approximately 10.62 million meters of woven fabric per annum and 700 sewing machines with production capacity of 3.15 million garments per annum.


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