Reid & Taylor’s IPO slated for June

Reid &Taylor’s IPO, which is awaiting clearance from the Securities and Exchange Board

of India (SEBI), may hit the market by June 2011. The IPO is likely to be launched with a valuation of nearly $1 billion and the issue is slated to be at about Rs 1,000 crores. SKNL (S Kumars Nationwide Limited), a leading textile and apparel manufacturing company, holds a 75.5 per cent stake in Reid &Taylor. SKNL’s consolidated net profit stood at Rs 330.9 crores. It reported topline growth of 36 per cent in FY ’11 and expects a topline of Rs 6,700 to Rs 7,000 crores in FY ’12 on easing raw material prices. Net profit after tax has grown by about 44 per cent year-on-year. Fabrics constitute about 70 per cent of sales, and the apparel business constitutes about 30 per cent of sales. And because of the IPO, SKNL hopes its debt will fall by Rs 600 to Rs 700 crores over the coming years.

Reid & Taylor was launched by SKNL in India in 1998 with the inauguration of a state-of-the-art fabric plant at Mysore. Today, Reid & Taylor has emerged as a leading brand in the worsted suiting segment. Reid & Taylor is the first brand in India to offer both fabrics and apparel under one label. The apparel range includes formal and casual daywear suits, jackets, trousers, shirts, ties and accessories along with a wide selection of T-shirts, jeans, and other weekend wear.