IPO proceeds to be used to set up a unit in TN: Minar Intl

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS CRISIL assigns CRISIL IPO grade 2/5 to Minar Intl IPO CRISIL assigns grade 2/5 to Minar International's IPO Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

Minar International's IPO will open on September 25 and will close on September 29.

The company's CMD UK Nambiar says the company would be making an attempt to put up a processing unit for the wider width processing in a place called Perundurai, which is the prime objective of putting the IPO.

Excerpts from CNBC - TV18's exclusive interview with UK Nambiar:

Q: Would very quickly like to know the objects of the issue that you have? You intend to up your stitching capacity by how much?

A: We would be making an attempt to put up a processing unit for the wider width processing in a place called Perundurai, which is the prime objective of putting the IPO.

Q: Can you give us a breakup of the various objects of the issue? How much you are going to be using for this particular processing unit and further on?

A: The entire issue is motivated only for inducting the manufacturing process of the secondary stature. The entire issue is motivated only to accomplish the processing unit at a place called Perundurai in Tamil Nadu near Coimbatore district.

Q: Could you also take us through one of your risk factors, which essentially talks about a temporary debarment until the 22nd November from exporting textiles in countries such as US and Canada? Essentially as we understand it you export a substantial sum to the US markets, how much of the proportions to the US markets do you export out of your total net sales and when do you hope to see this debarment getting resolved? Are you looking at a resolution also?

A: 90% is our export portion to the United States market. This debarment is related to a quota period of 2000-2004, which literally ended on 31st December 2004. Beyond that it is quota free for everybody.

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