- IPO price band has been fixed at Rs 258-268 per share.
- The company plans to garner up to Rs 215 crore through fresh issue of shares
- The proceeds will be used to repay debt and open new outlets of the Crocodile brand.
- The issue opens on August 2 and closes on August 4.
Children's apparel brand, Crocodile's parent company, SP Apparels Ltd., is looking to raise up to Rs 240 crore through an initial public offering (IPO). The price band has been fixed at Rs 258-268 per share.
The IPO consists of raising Rs 215 crore via fresh issue of equity shares and offer for sale of up to 900,000 equity shares amounting to nearly Rs 24 crore by private equity investor, New York Life Investment Management India Fund.
The issue opens on August 2 and closes on August 4.
The company is looking to primarily use the proceeds of the IPO to repay Rs 63 crore of debt, nearly Rs 75 crore in capital expenditure and Rs 28 crore in expanding their retail brand ‘Crocodile', P Sundar Rajan, chairman and managing director told BloombergQuint. The debt in the books of the company as of March 31, 2016 stood at Rs 256 crore.
SP Apparels Ltd is a manufacturer and exporter of knitted garments for infants and children. The company has two verticals - garments and retail. Garments involves only manufacture and export whereas retail division engages in manufacture, distribution and marketing the products under their brand Crocodile.
The company is looking to extend the Crocodile brand to men and women's wear, P Sundar Rajan and Chief Financial Officer V Balaji said.
The company's consolidated revenue and net profit grew to Rs Rs 537 crore from Rs 479 crore, while net profit grew to Rs 34 crore from Rs 10 crore, at the end of March 31, 2016.
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