The Hindu Business Line : Gokaldas Exports IPO at Rs 375-425

Mr Madanlal Hinduja (left), Chairman, Gokaldas Exports Ltd, with Mr Vallabh Bhanshal, Chairman, Enam Financial Consultants Pvt Ltd, at a press conference in Mumbai on Wednesday. - Paul Noronha

Mumbai , March 23

GOKALDAS Exports (P) Ltd has announced the entering of capital market with an initial public offering of 31.25 lakh equity shares of face value Rs 10 each. The IPO will be priced at Rs 375-425 a share through a 100-per cent book-building route. The offer will open on March 30 and close on April 6.

According to Mr Rajendra Hinduja, Executive Director, 18.75 lakh shares or 60 per cent of the equity shares will be issued on a discretionary basis to qualified institutional buyers. Another 15 per cent (4.68 lakh shares) will be allocated to wholesale bidders and not less than 25 per cent to retail bidders.

The issue is expected to bring in Rs 117-133 crore. Proceeds of the issue will be used to set up four factories, three in Bangalore and one in the Special Economic Zone in Chennai. It will also be used to retire some working finance loans from banks. The issue is entirely a fresh allotment and does not involve dilution of promoters' stake.

Mr Hinduja said that the book value per share is currently at Rs 105 and the earnings per share for last year was Rs 33.

Post-IPO, the promoters' holding will be reduced to 76.9 per cent from 93.99 per cent.

The issue will constitute 18.818 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 Pvt Ltd and co-book-running lead manager is IL&FS Investsmart Ltd. Karvy Computershare is the registrar and the stock will be listed on the BSE and the NSE.

Last year the company recorded 35 per cent growth because it added another six factories to its fold. It has 43 factories and a workforce of 31,000.

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