reid taylor india ltd Management discussions

REID AND TAYLOR (INDIA) LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS CURRENT BUSINESS OUTLOOK AND PLANS: Your Company manufactures Reid & Taylor Worsted Suiting and Premium natural fiber suiting. The Company also markets premium Ready-to-Wear Garments under the brand Reid & Taylor and Stephens Brothers. SHARE CAPITAL: During the year, the Company has allotted 8,07,58,472 Nos. of Equity Shares of Rs. 10/- each on 10th September 2010, as fully paid bonus shares to the holders of the existing Equity Shares of the Company, in proportion of 3 (three) Nos. of Equity Shares of Rs. 10/- each for every 2 (two) existing fully paid up Equity Shares held by them. INITIAL PUBLIC OFFERING (IPO): As approved by the shareholders of your Company in an EOGM on 27th September 2010, the Initial Public Offering of your Company is being proceeded with. The Draft Red Herring Prospectus (DRHP) was filed with SEBI on 9th December, 2010 and after necessary clarifications over the past months, the market regulator SEBIs approval is expected early June, 2011. Approvals from other Statutory Authorities such as BSE, NSE and RBI have already been received. As members are aware, SKNL holds 74.39% and GIC Singapore holds 25.61% of the shares of RTIL. The issue size will be approx. Rs. 1000 Crores which includes primary issue of Rs. 500 Crores (by fresh issue of equity shares) and secondary issue of Rs. 500 Crores (offer for sale of equity shares by existing shareholders). The Book Running Lead Managers (BRLMs) advise that the issue will be hitting the market some time shortly. Of the total proceeds, primary proceeds will be used for the Reid & Taylor business and the secondary proceeds raised by SKNL will be used for paying off SKNL debts.