Home Retail SP Apparels files for IPO

    SP Apparels files for IPO

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    Coimbatore-based SP Apparels, owner of the Crocodile fashion brand, has filed draft papers with capital markets regulator Sebi to raise at least Rs. 215 crore through an initial public offer.

    The company intends to garner up to Rs. 215 crore through fresh issue of shares, while its existing shareholders will offload 9,00,000 equity shares, as per the Draft Red Herring Prospectus (DRHP) filed with Sebi.

    “The proceeds from the fresh issue will be utilised for repayment of debt, expansion and modernisation of manufacturing facility at Salem in Tamil Nadu and opening of new stores for the sale of ‘Crocodile’ products, the company said. The funds raised will also be used for addition of balancing machineries for its existing dyeing unit at Sipcot, Perundurai in Tamil Nadu and other general corporate purposes,” the company told PTI.

    The company intends to list its shares on BSE and NSE.

    Established in 1989, the company manufactures and exports knitted garments for infants and children, and also manufactures and retails menswear in India under the brand ‘Crocodile’.

    The book running lead manager to the issue is .

    The company expects to realise the benefits of listing of the equity shares on the stock exchanges, including the enhancement of its brand name and provision of liquidity to the shareholders.

    SP Apparels operates 20 manufacturing facilities in and around the region of Avinashi in Tamil Nadu.

    As of November, 2015, its aggregate outstanding debt was Rs. 251.8 crore comprising long-term borrowings, short-term borrowings and current maturities of long-term borrowings. It reported a net profit of Rs. 10.1 crore in 2014-15 fiscal.