The Hindu Business Line : Gokuldas Exports plans public issue to fund expansion

GOKULDAS Exports Ltd has announced that it will enter the capital market with a public issue of 31.25 lakh shares of Rs 10 each at a price to be determined through the 100 per cent book-building route. This is to finance the setting up of new manufacturing facilities and the modernisation and expansion of existing factories.

The company filed its draft red herring prospectus with SEBI on February 4, according to a press release. The issue will constitute 18.18 per cent of the fully diluted post-issue, paid-up capital of the company. The book-running lead manager to the issue is Enam Financial Consultants Private Ltd and IL&FS Investsmart Ltd. Members of the Hinduja family are the promoters of this company. Post-IPO, the promoters holding will be 76.29 per cent.

Sixty per cent of the issue (18.75 lakh equity shares) will be issued on a discretionary basis to qualified institutional buyers. Fifteen per cent (4.69 lakh equity shares) will be available for allocation on a proportionate basis to wholesale bidders and not less than 25 per cent of the issue (7.81 lakh equity shares) will be available for allocation to retail bidders.

Gokuldas Exports reported revenues of Rs 382.8 crore with net profits of Rs 24.7 crore in the six months ended September 30, 2004. The company manufactures and exports clothing. Its buyers include brands such as Nike, GAP, Banana Republic, Tommy Hilfiger, Abercombie and Fitch, and retailers such as Wal-Mart, Sears and The Metro Group. It has 43 factories and employs over 30,000 people.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page