Lux Innerwear looking for BSE listing

After the successful launch of Lux innerwear in the

Indian market, Lux Industries is looking at venturing into the BSE stock exchange and trading its stocks under the Lux Innerwear brand name. Its competitors are already listed on the BSE and are performing well. For example, despite bad market scenario, Lovable Lingerie doubled its profits since its listing on March 24, whereas Rupa & Co is also doing well.

The Lux innerwear brand was listed on the regional stock exchange of Kolkata and Ahmedabad in October 2003, but not trading currently. Also it did not churn out good results. After the company introduced an IPO, promoters’ share fell to 70 per cent whereas public holding stood at 30 per cent. Citing low liquidity as the reason behind dismal performance, the company has decided to jump on the bigger pie by registering at the BSE. Lux Industries’ current net worth is Rs 30 crores and this makes it eligible to be listed under the SME segment on BSE. The company feels that once they register at BSE the stocks will trade well.

Lux declared a net profit of Rs 8.4 crores on sales of Rs 516 crores in 2010-11. The company recorded a 6 per cent rise in net profit to Rs 1.4 crores while sales declined 21 per cent to touch Rs 81 crores in the quarter ended June 30, 2011. The brand is doing well in the Middle East, especially Dubai, and is planning to enter the South African and European markets.