SP Apparels' IPO to hit markets soon
2016 will certainly be a year of IPOs with several key companies expected to get listed. The list of prospective companies is interesting with BSE, NSE , ICICI Prudential Life Insurance and HDFC Life also expected to get listed in this fiscal year. Retail investors have plenty of options when it comes to investing in IPOs .
SP Apparels Limited (SPAL) is set to debut on the bourses in the coming month. The details of the issue are as follows:
a. Issue size : Rs 2,150 million
b. Price band : Rs 258 to Rs 268 per share
c. Bid opens on August 2, 2016 (Tuesday) & closes on August 4 ,2016 (Thursday)
The funds raised will be utilised for:-
1. Expansion and modernisation of existing manufacturing plant at Valpady , Salem , Tamil Nadu.
2. Prepayment and reduction of debt
3. Opening of stores for 'Crocodile' brand
SPAL specialises in the highly challenging segment of manufacture and export of knitted garments for infants and children.
The labour-intensive, quality and stringent safety requirements, coupled with more variety and small batch size orders increases the complexity of manufacturing. There are stringent quality control checks consisting of inspection and testing at every stage of manufacturing.