Momai Apparels files for IPO through NSE Emerge

With an aim to launch the largest IPO in the small and medium enterprises (SME) space, Momai Apparels is launching an IPO. The stocks

will be listed on NSE Emerge and the IPO would be to the tune of Rs 41 crores. Momai Apparels is a subsidiary of Ashapura Intimates Fashion.

The issue, in the price band of Rs 78-90, will be open for subscription from September 25 to 30, 2014. The company has managed to close its pre-IPO placement of Rs 13 crores in two days, with large participation from high net-worth investors and Small Industries Development Bank of India (SIDBI) investing Rs 3 crore. It was priced at Rs 78 a share in the pre-IPO placement. Care has assigned ‘SME Fundamental Grade 4 /5’ to the IPO indicating ‘very good fundamentals’.

Momai Apparels makes intimate garments, such as lounge wear, bridal night wear, honeymoon sets, bathrobes, sportswear and leggings for its parent company Ashapura Intimates Fashion, which operates in the retailing and exports space. It plans to utilise the capital to expand its capacity across the category by setting up a new plant at Vapi in Gujarat.

Momai would also aim for subsidy provided under the Textile Upgradation Fund to build the factory in six to nine months. Last year, the group listed Ashapura Intimates Fashion on the SME platform at Rs 40 a share, which is now trading at Rs 130.