TCNS Clothing gets SEBI go-ahead for IPO

IPO

Women's apparel maker TCNS Clothing Company has received markets regulator SEBI's go-ahead to float an initial public offering.

TCNS sells its products under W, Aurelia and Wishful brands.

The firm had filed draft papers with the regulator in February and obtained its "observations" on May 4, according to the latest update with the Securities and Exchange Board of India.

SEBI's observations are necessary for every company planning to launch a public issue like initial public offer (IPO), follow-on public offer (FPO) and rights issue.

With this, the total number of companies receiving SEBI's approval has reached 16 so far this year.

Going by the draft papers, little over 1.57 crore shares are to be offloaded through the offer-for-sale (OFS) route. Among others, promoters -- Onkar Singh Pasricha and Arvinder Singh Pasricha -- will offload shares in the IPO.

Of the total, 47.14 lakh shares would be allocated to anchor investors.

"Our company expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity to our shareholders," the draft papers noted.

Kotak Investment Banking and Citi are the book running lead managers for the offer.

As on September 30, 2017, TCNS sold its products through 418 exclusive brand outlets, 1,305 large format store outlets and 1,361 multi-brand outlets in different parts of the country. It also sold products through six exclusive brand outlets in Nepal, Mauritius and Sri Lanka.