Monte Carlo plans IPO to raise funds

Apparel maker Monte Carlo Fashions is looking at launching its initial public offering (IPO) on December 3. The plan is to raise around Rs 400 crores from by selling 54.33 lakh shares, constituting 25 percent of the post offer equity capital. Ludhiana-based Monte Carlo was expected to announce its price band on November 26, five business days prior to the launch of the issue as per Sebi rules.

Sources say that the offer includes partial stake sale by Samara Capital through its investment firm Kanchi Investments, and 15 percent stake dilution by the promoter and promoter group. Kanchi Investments has offered to sell 9.46 percent stake (20.58 lakh shares) of the total 18.51 percent stake it holds. Kanchi Investments’ holding will drop to 9.04 percent post the offer. Sebi had cleared the offer on September 12, and the issue was earlier slated to hit the markets in end of September to early October.

SBI Capital Markets, Axis Capital, Edelweiss Financial Services and Religare Capital Markets are acting as advisors on the issue.