Mumbai-based Sudar Garments has chalked out a roadmap to hit the capital market by the end of this fiscal year. In fact, the company has already got market regulator Securities and Exchange Board of India (SEBI’s) approval to raise Rs 65-70
crores through an IPO. “We have received the nod from SEBI for our proposed IPO and are planning to hit the market before the current financial year ends,” says Murugan Muthiah Thevar, Chairman and MD, Sudar Garments. “We are planning to raise Rs 65-70 crores from our proposed IPO and the utilisation is for our future expansion and working capital requirement,” he adds. The IPO would amount to 49 per cent of the fully diluted post-issue capital of the firm. The firm recommends offering 90.88 lakh equity shares of Rs 10 each to the public through 100 per cent book building process.
Sudar Garments is into manufacturing of apparels and specializes in shirts, trousers and a wide range of other apparels. An integrated apparel manufacturer, it has its own setup at Khalapur Taluka in Raigada district of Maharashtra on a built-up area of about 29,626.30 sq. mts. The unit has a combined capacity of producing 1,66,667 pieces of shirts, dress, pants tops, skirts and denims per month. It caters to whole-sellers and brands through a retail distribution network in malls and MBOs. Sudar also manufactures under its own brand name ‘Glory to Glory’. And, it’s mulling launching two more brands ‘St Paul’ and ‘Majesty’ soon. In the retail space it has selling agents in south India for Glory to Glory and is rapidly consolidating its network in the region.
Muthiah Thevar says, “Glory to Glory has been created for the south market. Through this brand we target the corporate clientele and have positioned the brand in the organic cotton segment in the premium category.” At the moment, the company may not have any EBOs but it’s on the anvil. “The company doesn’t have any retail presence of its own but we are marketing through MBO’s. We are in the process of getting all formats in the next fiscal with the IPO proceedings.”
Meanwhile, they are in the process of launching two more brands -- St Paul and Majesty. St Paul will be a low priced, mass brand of office and casual wear while Majesty will be a mid priced women’s and children’s wear brand. Shenoy says both the brands will be launched in Chennai before March 2011 “We are working towards it and appointing marketing agencies and brand ambassadors for promoting these brands,” he avers.
