Monte Carlo Fashions Ltd, which is into woolen and cotton garments, has announced plans to launch an Initial Public Offering of its equity shares to raise approximately Rs 350 crore through a book building process. The issue will open on December 3 and will close on December 5, 2014.
The promoters led by Jawahar Lal Oswal of Oswal Woolen Mills and private equity investor Samara Capital are together offering 5,433016 equity shares of face value of Rs 10 each for cash at a price band of Rs 630 to Rs 645 per equity share through an offer for sale. Bids can be made for a minimum of 23 equity shares and in multiples of 23 shares thereafter. The company may consider the participation by anchor investor.
While Samara Capital is diluting 7.58 per cent stake, the promoters will be selling 17.42 per cent of their holding. Post issue Samara Capital’s stake will come down from 18.51 per cent to 10.93 per cent. Two years ago Samara Capital had invested Rs 175 crore in the company in tranches.
“We will stay invested in the company,” said Paurush Roy, Managing Director, Samara capital.
Monte Carlo Fashions’ chairman Jawahar Lal Oswal said that the company would now focus to expand in the southern and western parts of India. For the financial year ended march 31, 2014, the company had reported net profit of Rs 55 crore on sales income of Rs 519 crore.
