SKNL raises Rs 235 crores

S  Kumars Nationwide Limited (SKNL) has raised Rs 235 crores by issuing fresh shares to Qualified

Institutional Buyers (QIBs). The company received an order book of approximately 2.5 times the base issue size of $25 million and opted to exercise the over allotment option of $25 million. The issue was widely subscribed including investors from the United States, Europe and Asia (including India). The equity shares were issued at a price of Rs 80 per share. Besides the funds raised will be utilized for the growth plans of the company. Moreover J P Morgan India, Edelweiss Capital and Antique Capital Markets were the bookrunning lead managers to the issue.

S Kumars Nationwide, is one of India’s leading textiles and apparel manufacturing company with expertise in multi-fiber manufacturing. It has extended its presence in multiple product categories from fabrics to apparels and home textiles. From a turnover of Rs 5 million in 1948, today the group has come a long way in achieving a turnover of Rs 17 billion. SKNL has set standards of excellence, acquiring many firsts to its credit and crossing a number of milestones in its journey.

As consumers are increasingly shifting away from buying textile and getting it tailored to ready-to-wear apparels, S Kumars is planning to increase its share of ready-to-wear in its product mix. At present, ready-to-wear accounts for 30 per cent of SKNL’s sales, which is likely to increase to 40 per cent over the next two years. As a part of its growth strategy, it is also looking to enhance its distribution reach by adding more MBOs and opening new EBOs.