Scotts Garments’ launches IPO

Scotts Garments has entered the capital market with its initial public offering (IPO)

of 1,05,06,954 equity shares of face value of Rs 10 each. The price band for the issue, which will close on April 29, is fixed at Rs 130-132 a share. The Rs 139 crores IPO of Scotts Garments has opened for subscription today.

Scotts Garments is mainly engaged in producing woven, knitted and denim garments. It has 15 factories and state of the art textile mills based in Karnataka and Tamil Nadu. The company has appointed Keynote Corporate Services as a book running lead manager, Canara Bank-Merchant Banking Division as a co-book running lead manager and Link Intime India as a registrar to the issue.

The company intends to use issue the proceeds (of nearly Rs 139 crores at higher end of price band) for setting up of unit for trouser manufacturing at Doddaballapur, Karnataka and knitting and fabric processing unit at Kagal - Kolhapur; margin money for working capital of new units; and general corporate purposes. Equity shares of the company are proposed to be listed on Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).