SEL Manufacturing expects to maintain 100% growth ahead

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SEL Manufacturing expects to maintain 100% growth ahead

SEL Manufacturing has been a buzzing stock throughout the day. One of its subsidiaries, SEL Textile is expected to come out with an IPO soon. In an exclusive interview with CNBC-TV18, Neeraj Saluja, MD of SEL Manufacturing, said that they are currently in the process of filling the RHP and to raise around Rs 100 crores.

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SEL Manufacturing has been a buzzing stock throughout the day. One of its subsidiaries, SEL Textile is expected to come out with an IPO soon. In an exclusive interview with CNBC-TV18's Gautam Broker and Ekta Batra, Neeraj Saluja, MD of SEL Manufacturing, said that they are currently in the process of filling the RHP and to raise around Rs 100 crore. "The company has grown at 100% from last seven-eight years and we expect to be able to maintain that growth," he added.

Below is a verbatim of the interview. Also watch the accompanying video.

Q: When could you just talk about SEL Textile? You are planning to raise about Rs 100 crore. What sort of dilution are you planning to work with? Can you just highlight the financials of the company for us?

A: One is the 100% subsidiary of SEL Manufacturing, and we are in the process of filing the RHP. The DRHP has already been cleared by the regulator. On the financial front, this company was set up for inorganic growth. We required two spinning units one is in Rajasthan and the other one is in Haryana. The company is also setting up 50 tonne a day towel plant in Ludhiana.

Q: So what kind of revenues are you expecting from SEL Textiles and what will you do with the IPO proceeds? Will it be used for expansion plans?

A: No, it is not going to be used for expansion plans. It is setting up with towel plants already under implementation.

Q: What kind of revenues and profitability can we expect from the SEL Textiles once the expansions are in place?

A: We will be able to maintain the better revenues and margins at the SEL Manufacturing, in line with the present performance.

Q: You have done a phenomenal 40% growth in the first half of the year. What exactly are you expecting in the second half?

A: If you see the growth of the company from last seven-eight years, we have been growing that to almost 100%. So, I think we will be able to maintain that.