The proceeds or money raised from the IPO are expected to be in the range of 120 Crore Rupees. The Company has recently filed the Red Herring Prospectus with SEBI.
Price Band of Chiripal Industries IPO: Rs. 80 to Rs. 90 per share
Face value of Chiripal Industries IPO: Rs. 10
No. of shares to be offered: 14.2 million shares
Chiripal group is already on the stock market – it has other group companies like Nova Petrochemical and Nandan Exim Limited already listed on the stock exchanges. From the money raised from the IPO issue, the company will utilize around Rs 53 crore to fund its capital expenditure plan and will invest Rs 6 crore in its subsidiary Chiripal Lifestyle Ltd, to finance the first phase of its 20 retail outlets 'ConneXions'. With the retail sector getting fiercely competitive, it will be interesting to see how much market share the Chiripal Industries IPO can expect. CIL will also utilise part of the raised fund to acquire 43% stake in Vraj Integrated Textile Park Ltd - a Rs 111 crore integrated textile park. The remaining funds will be utilised as working capital for the company.
Related: Bharat Oman Refineries IPO
Other than that, the company has given some concrete plans for the IPO money raising. The plan includes setting up a new yarn dyeing facilities, fabric dyeing facilities and weaving facilities and expansion of its POY, FDY, textured yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities. CIL will also invest around Rs 30 crore in setting up 7.5 mw lignite-based power plant to cut down on its power cost.
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