The Hindu Business Line : Gangotri Textiles to raise Rs 55 cr through public issue

LAUNCHING PAD: Mr Manoj Kumar Tibrewal (right), Managing Director, Gangotri Textiles Ltd, with Mr C.R. Vasudevan, President-Projects, at a press conference held in Mumbai on Wednesday. - Paul Noronha

Mumbai , May 10

The Coimbatore-based Gangotri Textiles Ltd plans to enter the capital market with a follow-on public issue of equity shares of Rs 5 each through book building process to raise Rs 55 crore.

The issue opens on May 18 and closes on May 23.

SBI Capital Markets Ltd is the book running lead manager and Intime Spectrum Registry Ltd is the registrar to the issue.

The company proposes to part-finance its Rs 351-crore investment plan, covering expansion-cum-integration of facilities in spinning, weaving, processing, garmenting and windmill installation, through this public issue. The remaining requirement of funds for the expansion project would be funded through rupee term loans from banks and financial institutions.

Expansion plans

The company plans to expand and forward integrate by setting up two new units — a ring spinning unit of 19,200 spindles and another unit of 31,200 spindles capacity — which will produce polyester cotton yarn.

The company plans to add 20 new products — it owns the `Tibre' brand of trousers and other textiles products — 20 new products and improve its market share by selling through its network of 750 retailers across the country.

Addressing the media on Wednesday, Mr Manoj Tibrewal, Managing Director, GTL, said that his company has embarked on an expansion plan especially for garments, as there is a high demand in the domestic and overseas markets."Five years ago when we ventured into the garments business, we realised that the US and European market wanted constant supplies of finished garments. Over the period of time, we have built our brand and now we want to expand it further," he said.

The company's stocks traded at Rs 60.60 on Wednesday.

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Gangotri Textiles to raise Rs 55 cr through public issue