Olympic Cards to list shares on March 28

The company had come out with an IPO aggregating upto Rs 25 crore in the price band of Rs 30 to Rs 32 per equity share of Rs 10 each. The issue was opened for subscription from March 9 to March 13 and was fully subscribed.

The issue price has fixed at Rs 30 per equity share of Rs 10 each. Ashika Capital Limited is the sole BRLM for the issue and Cameo Corporate Services Ltd is the Registrar to the issue.

The company proposes to utilize the net proceeds of the issue to fund its expansion plan of setting up a new manufacturing unit near Chennai and capital expenditure for establishing 4 own retail outlets of the company. Presently the Company manufactures products from its factory in Chennai. As a part of the expansion plan, it proposes to set up a new factory at Kannigaiper, near Chennai. It has already purchased 5.65 acres of land for the purpose.

Olympic Cards is presently operating through direct outlets located at various places across Tamil Nadu. It has 6 own retail outlets. As a part of the expansion plan, it intends to set up additional 4 direct retail outlets in order to have a wider reach to public. It is currently operating through 5 franchisee outlets as well and intends to set up more franchisee outlets so that there is more equitable distribution of its outlets across the country.

The premier product of Olympic Cards is wedding invitation cards accounting for more than 53% of current sales. For the year ended 31st March 2010, the company’s total income was Rs 34.86 crore and profit after tax was Rs 1.29 crore whereas for the year ended March 31, 2011, the total income was Rs 45.72 crore and PAT of Rs 2.18 crore and for the nine months period ended of the current fiscal December 31, 2011, the company’s total income was Rs 32.72 crore and profit after tax of Rs 1.93 crore.