SME: Kavita Fabrics IPO to open on February 20

Gujarat-based Kavita Fabrics is going to launch its public issue of 12.75 lakh equity shares of Rs 10 each on Wednesday, February 20, 2012. The issue price is fixed at Rs 40 per share.

Out of the total issue, 2.07 lakh shares will be reserved for subscription by market makers to the issue and the balance 10.68 lakh shares referred to as the net issue to the public.

The company that manufactures synthetic fabrics from man-made yarns by using weaving technology aims to raise Rs 5.1 crore through the issue, which will close for subscription on February 22.

Kavita Fabrics makes synthetic fabrics in the form of semi-finished sarees and dress materials.

The company intends to use issue proceeds for long-term working capital requirement and general corporate expenses.

Promoters' holding will be reduced from 56.78 percent to 35.93 percent post issue.

The equity shares are proposed to be listed on the SME Platform of BSE. Intensive Fiscal Services Private Limited is the lead manager to the issue.

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