Monarch Apparels files for DRHP on BSE

Monarch Apparels plans to raise Rs 50 million by issuing 4.5 million equity shares to the public at a unit price of Rs 11.

The issue constitutes 28.83 percent of the post paid up capital. BCB Brokerage is managing the issue for Monarch. The company plans to utilize the raised funds to meet its long term working capital requirements and for carrying on general corporate activities.

Brand Monarch was launched in 1994 by Chandan Parmar through his proprietary 'Pavan Apparels'. The sole business of Pavan Apparels was marketing and selling men's jeans under the brand 'Monarch'. The manufacturing process of the jeans was entirely outsourced. To further expand his textile business, in 2005, Parmar along with his co-promoters incorporated Monarch Apparels that gradually extended the textile business beyond marketing and selling men's jeans. Today, the company has vertically integrated and is involved in designing, manufacturing and marketing men’s apparels with a product line consisting of jeans, cotton trousers, corduroys trousers and cotton shirts.

The company distributes its products through retail distributor’s and multi-brand outlets in various parts of India such as Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Andhra Pradesh, Uttar Pradesh, Bihar and Jharkhand. It wants to further increase its presence in the country by opening franchisee stores. The company has three manufacturing units located in Mumbai. It reported revenues worth Rs 1,045 million and a profit of Rs 11.8 million in the fiscal 2014.