Momai Apparels IPO oversubscribed 1.84 times

Momai Apparels’s Rs 43.33 crores IPO, which was launched between September 25 to 30, 2014 was oversubscribed by

1.84 times. It was the biggest SME IPO for NSE Emerge Listing. The company’s shares were listed on NSE SME window on October 16, 2014. A grand listing ceremony organized at the National Stock Exchange (NSE), which was presided over by Chitra Ramkrishna, MD & CEO of NSE. Harshad Thakkar, CMD of Momai Apparels and Mahavir Lunawat, MD of Pantomath Capital Advisory, the sole book running lead manager to the issue, shared the dais.

The company raised Rs 43.33 crores out of which Rs 13 crores were raised as Pre-IPO placement. The subscription of remaining public issue portion of Rs 30 crores closed on October 30, 2014, pursuant to which a fresh issue of 38,46,400 equity shares was made at a price of Rs 78 per share including a premium of Rs 68 per share with a face value of Rs 10 per share discovered in accordance with the book building process.

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.