Reid and Taylor files for IPO approval

The stage is set for Reid & Taylor (India) as it came up to the

market regulator Securities and Exchange Board of India (SEBI) for approval of its plan to access the capital market in India with an initial public offer. In an official move towards the plan, Reid & Taylor (India) filed its Draft Red Herring Prospectus (DRHP) with SEBI at the Bombay Stock Exchange, and is waiting for the green light. Reid & Taylor (India) is a subsidiary of Indian textile and apparel giant S Kumars Nationwide Limited (SKNL).  The issue includes an offer for sale portion by SKNL and it has been observed that SKNL is trading 6 per cent after its subsidiary filed for the IPO approval.

Reid & Taylor is reportedly looking to mop up around Rs. 1,000 crores from the initial public offer and the funds are expected to be utilized to finance expansion plans. The market capitalisation stands at over Rs 2,006 crores as of date. SKNL Director Ashesh Amin had earlier said the proceeds from the IPO would be utilized to expand Reid & Taylor's manufacturing capacity and retail network across India, as well as overseas. Reid & Taylor is likely to be launched in the US market by mid 2011.

Reid & Taylor is a premium menswear brand and its range includes suits, jackets, trousers, shirts, ties, T-shirts, jeans and accessories. The products target the premium segment and are endorsed by Bollywood actor Amitabh Bachchan.