Flexituff International IPO opens for subscription

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Flexituff International IPO opens for subscription

The initial public offering of Flexituff International, a leading integrated manufacturer of flexible intermediate bulk containers (FIBC), has opened for subscription today.

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The initial public offering of Flexituff International , a leading integrated manufacturer of flexible intermediate bulk containers (FIBC), has opened for subscription today. The company is offering 67.5 lakh equity shares through the issue including offer for sale of up to 22.5 lakh equity shares by Clearwater Capital Partners (Cyprus) Limited.

The company currently manufactures FIBC, geo-textile fabric and ground cover, reverse printed BOPP woven bags, special PP bags including leno bags. These products are manufactured at the three manufacturing units located in Pithampur (MP) and Kashipur (Uttrakhand).

The price band of the issue has fixed at Rs 145-155/share. The equity shares of the company are proposed to be listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

The issue would constitute 31.09% of the fully diluted post issue paid-up capital of the company. The issue will be through a 100% book building process. Not more than 50% of the issue shall be allocated on a proportionate basis to qualified institutional buyers (QIBs), not less than 15% of the issue shall be available to non-institutional bidders and not less than 35% of the issue shall be available to retail individual bidders. The company may consider participation by anchor investors in the issue for up to 30% of the QIB Portion.

The company would utilize part of the fresh issue proceeds towards expansion of its manufacturing facilities at SEZ and DTA units at Pithampur and for setting up of Dripper project at Kashipur.

Collins Stewart Inga Private Limited is the sole book running lead manager to the issue.

FIL's sales on consolidated basis has grown at a CAGR of 37.9% from Rs 220.2 crore in FY08 to Rs 5,779 mn in FY11 with approximately 76% of the revenue being derived from exports while over the same period its total installed capacity for all the products has increased from 23,000 MT to 48,500 MT (FIBC - 25,000 MT). The EBDITA has grown from Rs 29.1 crore in FY08 to Rs 76.9 crore in FY11 depicting a growth at a CAGR of 38.3%.