Mumbai: Monte Carlo Fashions Ltd (MCFL) has fixed a price band of Rs 630-645 per equity share to raise around Rs 350 crore through an offer for sale by its promoter group and private equity (PE) firm Samara Capital.
The company is making an IPO of 54,33,016 equity shares of face value of Rs 10 each for cash at a price band of Rs 630-645 per equity share through an offer for sale by selling shareholders. The offer constitutes 25 per cent of the post-offer paid-up equity share capital of the company.
The issue opens on December 3 and closes on December 5.
After the IPO, the promoters will have an up to 64 per cent stake, public 25 per cent, and Samara Capital would retain 11 per cent stake, Monte Carlo Fashion chairman Jawahar Lal Oswal told reporters here.
In June 2012, Samara Capital, a Mauritius-based India-focused private equity firm, through its affiliate KIL
acquired a stake in MCFL and currently holds 18.51 per cent of the pre-offer capital of the company.
The company is also considering participation by anchor investors. The anchor investor bidding date will be one working day prior to the offer opening date.
Launched in 1984 as an exclusive woollen brand by Oswal Woollen Mills Ltd (OWML), Mr Oswal said Monte Carlo will continue to focus on the growth of its cotton and cotton-blended apparel to establish pan-India presence.
"We have 190 exclusive outlets, of which 80 are company owned. As part of our growth strategy, the company has a target of establishing 275 'Monte Carlo exclusive brand outlets' by the end of fiscal 2017. We seek to penetrate further in the western and southern regions of India," Monte Carlo Fashions executive director Sandeep Jain had earlier said.
The company operates two manufacturing facilities in Ludhiana at Punjab, one for woollen apparel products and one for cotton apparel products.
After the dull primary market, Monte Carlo Fashions IPO is the first company to raise Rs 300 crore plus through capital market after the Narendra Modi government assumed charge, merchant banking sources said.