S.P
Apparels Limited’s Offer to open on August 2, 2016 and to close on August 4,
2016
Price
Band fixed from Rs. 258 to Rs. 268 per Equity Share
Coiambatore, July 29, 2016:
S. P. Apparels Limited (the “Company” or the “Issuer”) proposes
to open on August 2, 2016, an initial public offer of Equity Shares of face
value of Rs. 10 each (“Equity Shares”) for cash at a price band from Rs. 258 to
Rs. 268 per Equity Share consisting
of a fresh issue of Equity Shares aggregating up to Rs. 2,150
million (the “Fresh Issue”) and an Offer For Sale of up to 900,000 Equity
Shares (“offered shares”) by New York Life
Investment Management India Fund (FVCI) II LLC (the “Selling Shareholders and such
offer of equity shares by the selling shareholder, the “Offer for Sale”). The
Fresh Issue and the Offer for Sale are together referred to as the “Offer”.
The Offer will close on
August 4, 2016. Bids can be made for a minimum of
55 Equity Shares and in multiples of 55 Equity Shares thereafter. The Company,
in consultation with the Selling Shareholder and the Book Running Lead Managers
(“BRLMs”), may consider participation by Anchor Investors. The Anchor Investor
shall bid on the Anchor Investor Bidding Date; i.e. one Working Day prior to
the Bid / Offer Opening Date.
The
BRLMs to the Offer are Motilal Oswal Investment Advisors Private Limited and
Centrum Capital Limited.
The
Equity Shares offered through the Offer are proposed to be listed on BSE
Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).
The Offer is being made
through the 100% Book Building Process in compliance with Regulation 26(1) of
the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009, as amended (the “SEBI ICDR Regulations”),
wherein not more than 50% of the Offer will be allocated on a proportionate
basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Category”), provided
that our Company and the Selling Shareholder may, in consultation with the
BRLMs, allocate up to 60% of the QIB Category to Anchor Investors on a
discretionary basis in accordance with the SEBI ICDR Regulations (the “Anchor
Investor Portion”), of which one-third will be reserved for domestic Mutual
Funds, subject to valid Bids being received from domestic Mutual Funds at or
above the Anchor Investor Allocation Price.
Further, 5% of the QIB Category
(excluding the Anchor Investor Portion) will be available for allocation on a
proportionate basis only to Mutual Funds, and the remainder of the QIB Category
will be available for allocation on a proportionate basis to all QIBs (other
than Anchor Investors), including Mutual Funds, subject to valid Bids being
received at or above the Offer Price.
Further, not less than 15% of the Offer
will be available for allocation on a proportionate basis to Non-Institutional
Investors and not less than 35% of the Offer will be available for allocation
to Retail Individual Investors in accordance with the SEBI ICDR Regulations,
subject to valid Bids being received at or above the Offer Price.
All Bidders,
other than Anchor Investors, are required to mandatorily utilize the
Application Supported by Blocked Amount (“ASBA”) process providing details of
their respective bank accounts which will be blocked by the Self Certified
Syndicate Banks, to participate in the Offer. Anchor Investors are not
permitted to participate in the Offer through the ASBA process.
About S. P. Apparels Limited
S. P. Apparels Limited
is a leading manufacturer and exporter of knitted garments for infants and
children in India. These are manufactured at their integrated facilities that
allow them to provide end-to-end garment manufacturing services from greige
fabric to finished products.
The business consists of two main divisions – (i)
garments division (for manufacture and export of knitted garments for infants
and children); and (ii) retail division (for manufacture, distribution and
marketing of products in India under the brand name ‘Crocodile’).
The Company
is led by Promoters, who are first generation entrepreneurs and have over the
years grown the business of the Company to become the second largest exporter
among manufacturers of knitted garments for infants and children in India in terms
of revenue in the Fiscal Year 2014. (Source: Technopak Report).
For Fiscal Year
2016, the Company exported approximately 35.98 million pieces of knitted
garments for infants and children directly to international customers,
including TESCO and Primark. The Company’s 21 operating manufacturing
facilities and the manufacturing facility at Netaji Apparel Park (NAP) (which the
Company is in the process of being established), are located in and around the
region of Avinashi, Tamil Nadu.
On a restated consolidated
basis, the Company generated total revenues of Rs. 5,377.54
million for
Fiscal Year 2016 with a net
profit of Rs. 347.14
million achieving a Return on Networth of 30.80% for equity shareholders.
Disclaimer
S.P. Apparels Limited is proposing,
subject to receipt of requisite approvals, market conditions and other
considerations, to make an initial public offer of its Equity Shares and has
registered the RHP with the RoC, on July 21, 2016.
The RHP is available on the
websites of SEBI and Stock Exchanges at www.sebi.gov.in, www.bseindia.com and
www.nseindia.com, respectively, and is also available on the websites of the
Book Running Lead Managers at www.motilaloswalgroup.com and www.centrum.co.in.
Potential investors should note that investment in equity shares involves a
high degree of risk and for details relating to the same, see "Risk
Factors" beginning on page 14 of the RHP. Potential investors should not
rely on the DRHP filed with the SEBI for making any investment decision.
The Equity Shares have not been and will
not be registered under the U.S. Securities Act of 1933, as amended (the “U.S.
Securities Act”) and may not be offered or sold within the United States (as
defined in Regulation S of the U.S. Securities Act), except pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act and applicable state securities laws.
Accordingly, such Equity Shares are being offered and sold outside of the
United States in offshore transactions in reliance on Regulation S under the
U.S. Securities Act and the applicable laws of the jurisdiction where those
offers and sales occur.
For more information:
Adfactors PR - Ms. Purvi Shah 09833431331, 09820531932
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