Financial Daily from THE HINDU group of publications
Tuesday, Jun 07, 2005
Markets - IPOs
Provogue plans more Studios
Mr Nikhil Chaturvedi, Managing Director, Provogue (India) Ltd, at a press conference in Mumbai on Monday. Paul Noronha
Mumbai , June 6
PROVOGUE (India) Ltd is expanding its shirt manufacturing facility at Daman from 2,000 shirts a day to 3,000 shirts a day.
The company, which is entering the capital market with its initial public offering on June 10, is also setting up a trouser unit that will make 1,000 trousers a day.
The proceeds of the IPO, according to Mr Nikhil Chaturvedi, Managing Director, Provogue, will also be invested in the expansion of its retail network by 5 lakh sq. ft. in the next five years; and another 1.5 lakh to be added in the next two years.
The company intends to add 40 new small Provogue Studios and 21 mega stores to its current network of 40 stores spread across 19 cities. It has already signed agreements to put up its branded stores in Mumbai, Indore, Hyderabad, Delhi, Ahmedabad, Bangalore, Agra, Lucknow, Goa, Pune and Mangalore.
It will also unveil a design facility in the next couple of weeks in Andheri, Mumbai. The company is also intending to enter the womenswear, kidswear and innerwear segments.
So far, the company has only forayed into the African market by providing `total solutions' to textile companies there. The company provides machinery, testing facilities and manpower to African companies that draw incentives from their governments for entrepreneurial activity in the textile segment.
Thus the company's post IPO plans will involve extending product lines, enhancing design capabilities and expanding its presence in international markets.
The IPO will offer 40.49 lakh equity shares at a price band of Rs 130-150 per share of Rs 10.
The issue will constitute 25 per cent of the fully diluted post-issue paid up equity capital of Rs 16.19 crore.
The book running lead managers are SBI Captial Markets and Karvy Investor Services.
For the year ended March 31, the company posted an income of Rs 122.52 crore, and a net profit of Rs 7.21 crore.
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