Page Industries IPO opens on February 23, 2007

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Page Industries Limited (the "Company"), the exclusive licensee of Jockey International Inc. (USA) for India, Sri Lanka, Nepal, Bangladesh and Maldives, is entering the capital markets with an Initial Public Offering ("IPO") of 2,804,000 equity shares of Rs 10 each, for cash, at a premium to be decided through a 100 per cent book-building process (the "Issue"). The price band for the Issue has been fixed between Rs 360 and Rs 395 per equity share. The Issue opens on February 23, 2007, and closes for subscription on February 27 , 2007. The equity shares of the Company are proposed to be listed on the Bombay Stock Exchange ("BSE") and the National Stock Exchange ("NSE").

 

The Public Issue of 2,804,000 equity shares comprises a fresh issue of 1,412,354 shares and an offer for sale of 1,391,646 shares by the selling shareholders (jointly comprising the "Offer"). The Offer shall constitute 25.14% of the post issue paid-up capital of the Company. The Net Offer of 2,789,000 equity shares other than the employee reservation portion (15,000 equity shares) will constitute 25% of the post-offer capital of the Company.

 

The Offer is being made through the 100% book building process wherein upto 50% of the Net Offer size shall be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs"); wherein 5% of the QIB portion shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Offer price.

 

The objects of the Offer are to: raise capital for brand building; expansion of garment manufacturing capacity in the existing facility; setting up of a new garment manufacturing facility at Bommasandra, Bangalore; expansion of the elastic manufacturing facility, and socks manufacturing facility; purchasing a corporate head office at Bangalore; implementation of new generation ERP software (SAP); and modernisation of production process.

 

The Company plans to: expand the existing range of products through innovation; accelerate the brand building efforts; renew multi-pronged distribution strategy; explore the export initiative; exploit the unprecedented retail growth in India; and invest in further strengthening manufacturing infrastructure. 

 

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