Mudra Lifestyle opens below issue price

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Mudra Lifestyle, engaged in fabric weaving, processing, making garments and gradually moving towards garment manufacturing mainly in the men's shirts and lady's wear segments, has started at Rs 89.90, which just below its issue price of Rs 90 per share; touched an intraday high of Rs 100 and low of Rs 71 on the back heavy selling pressure and bad mood in the markets.

The stock was trading at Rs 72, down 20%, with volumes of 2,31,821 shares at 10:02 am on the NSE.

The company had entered capital market with a public issue of 95,80,000 equity shares of Rs 10 each through 100% book building process. Its issue oversubscribed 4.59 times.

Mudra Lifestyle, a leading manufacturer and exporter of fashion fabrics and garments with modern manufacturing facilities, proposes to utilize the net proceeds of the issue to expand its manufacturing facilities by setting up a new integrated unit having all the process of yarn dyeing, weaving, process house and garment manufacturing near Bangalore and Tarapur with an estimated investment of Rs 1774.90 million. Out of this  fund requirement, the company proposes to utilize debt up to Rs 1008.40 million and it is fully tied up.