Mandhana Industries' IPO opens on April 27


Mumbai: Mandhana Industries will enter the capital market with an initial public offering (IPO) of 83 lakh equity shares of 10 each. The issue opens on April 27 and closes on April 29. The company's major business segments include textiles and garments. Mandhana Industries produces fabrics for the domestic market and garments largely for exports. It has fabric weaving capacity of 18 million meters and fabric processing capacity of 20.4 million meters, at its plants in Tarapur. The company has garment capacity of 3.9 million pieces. The company's revenue growth is at a CAGR of 47 percent driven by increased weaving, dyeing and garment capacities over the past three years. The price band has been fixed at 120-130 a share. The company plans to raise up to 108 crore at the upper end of the price band. The issue will constitute 25.06 percent of the fully diluted post issue paid-up capital of the company. The qualified institutional buyers have been allotted 50 percent of the shares, the high net worth individuals got 15 percent and the retail investors were allotted 35 percent. The issue is open to anchor investors and they will be allotted 12.45 lakh shares. The issue proceeds will be used to set up a new garment manufacturing facility and also for the expansion of its yarn dyeing and weaving facility at MIDC, Tarapur, Maharashtra. The funds will also be utilized for margin money for its working capital needs and also for general corporate purposes. Edelweiss Capital and Axis Bank are the Book Running Lead Managers to the issue.