Monte Carlo to raise Rs 380 cr through IPO, PE

Apparel brand Monte Carlo has decided to raise Rs 330-380

crores through a combination of private equity and Initial Public Offer (IPO) next year. This is aimed at setting up a new garment facility and expanding network. The funds raised through these initiatives will be spent on expansion of Monte Carlo Fashions. The brand has branched out of Oswal Woollen Mills this year to explore. Part of Punjab based Nahar Group, the company proposes to dilute up to 25-30 per cent stake through private equity and public issue for raising Rs 330-380 crores.

It is already in talks with a few PE players to sell stake and build funds. The company will look at the right time for launching the IPO once the private equity placement takes place. It also plans to set up a woollen garment manufacturing facility having capacity of producing 1.8 million units per annum, in Ludhiana as part of its capital expenditure programme. It currently has a facility with capacity of producing 1.2 million units per annum.

With an aim of spreading pan-India, Monte Carlo will also look at expanding its store network from 130 at present to over 250 in phased manner. It will also sell its fashion garments through a strong network of 800 MBOs in the country. Seeking to leverage upon strong brand presence in woollen space, the company intends to strengthen the share of revenue from cotton based garments.