KPR Mill IPO opens for subscription

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KPR Mill, a vertically integrated apparel company with operations located at  Coimbatore, Sathyamangalam and Tirupur in Tamil Nadu, is open for subscription with a public issue of 5,912,100 equity shares of Rs 10 each through a 100% book-building process.

The price band is at Rs 225 to Rs 265 per equity share of Rs 10 each and the issue closes on August 7, 2007. The issue would constitute 15.69% of the fully diluted post issue paid-up capital of the company.

The book running lead manager to the issue is Kotak Mahindra Capital Company Ltd. and Co-Book Running Lead Manager is ICICI Securities Ltd.
 
The issue is being made through a 100% book building process wherein at least 60% of the issue shall be allocated on a proportionate basis to qualified institutional buyers (QIBs), out of which 5% shall be available for allocation to mutual funds only. Further not less than 10% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the issue shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the Issue price.
 
The company proposes to utilize the net proceeds of the issue to fund plans for expansion of the existing garment facility at Arasur, near Coimbatore; setting up a design studio at Arasur; construction of an additional hostel facility at Arasur; expansion of the processing facility at State Industries Promotion Corporation of Tamil Nadu Limited ("SIPCOT"), Perundurai; investment in a new knitting facility at Arasur; addition of balancing equipments for existing spinning facility at Sathyamangalam and general corporate purposes.