First Winner IPO opens for subscription

First Winner Industries, presently engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers, will open for subscription today with an Initial Public Offering (IPO) of 55,00,000 Equity Shares of Rs 10 each for cash at a price to be decided through a 100% Book-Building Process (the “Issue”).

The Issue comprises of an Employee Reservation of 100,000 Equity Shares and a Net Issue to Public of 54,00,000 Equity Shares. The Issue will constitute 31.02% of the post-Issue paid-up capital of the Company. The Price Band has been fixed at Rs. 120 to Rs. 130 per Equity Share and the Issue will close on June 12, 2008. The Equity Shares are proposed to be listed on Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). Almondz Global Securities Limited is the sole Book Running Lead Manager (“BRLM”) to the Issue.

Incorporated in 2003, First Winner Industries Ltd. started its operations with the objective to supply the textile fabrics to wholesalers and apparel & garment manufacturers. Initially, it started trading in the textile fabrics and with a view to have its own manufacturing facilities, it has set up its own weaving unit during 2006-07 by installing 100 looms. The manufacturing facilities are located at MIDC, Tarapur, District Thane, Maharashtra. The unit has total installed capacity to manufacture 108 lakh meter grey fabrics per annum. The Company is also executing job works for fabric and garment manufacturers.

The Company has two subsidiaries; viz., Ramshyam Textile Industries Limited and First Winner Lifestyle Private Limited (formerly Realgold Exports Private Limited), which are engaged in the same business. Ramshyam Textile Industries Limited is having 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle Private Limited has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

In order to diversify and expand its business activities, the Company has decided to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs. 1,203.98 lakhs and setting up of a new weaving unit to increase its existing production capacity to 170 lakhs meter p.a. at an estimated cost of Rs. 2,163.47 lakhs. The Company also intends to make prepayment of term loan amounting to Rs. 1,800 lakhs. The Company plans to meet the aforesaid objectives by means of issue proceeds.