The Coimbatore-based manufacturer and exporter of knitted garments, SP Apparels, intends to raise Rs. 215 crore by issuing fresh equity shares. Also, its existing share holders will sell 9,00,000 equity shares via IPO. The company intends to list its shares on BSE and NSE.
The IPO proceeds will be utilized for repaying debt and expansion. Also, the company will use some parts of the fund raised for modernization of manufacturing facilities located at Salem, Tamil Nadu. Besides, funds will be allocated for balancing machineries for its existing dyeing unit at Sipcot, Perundurai in Tamil Nadu.
The company mainly manufacture knitted garments for children and infants. Also, it manufactures and retails menswear under the brand name ‘Crocodile’. The more than 25 year old company has aggregate outstanding debt of Rs. 251.80 crore (as of November 2015). SP Apparels reported net profit of Rs. 10.10 crore in FY15.