Garment manufacturer Mudra Lifestyle to come out with an IPO; price band at Rs. 75 – Rs. 90

Mudra Lifestyle Limited, a fabrics and garments manufacturer has fixed a price band of Rs. 75 – Rs. 90 for its initial public offer (IPO) of 9.58 mn equity shares. The funds raised will be utilized to finance the company’s expansion plans. The IPO opens on Feb. 8 and closes on Feb. 14. The sole book running lead manager for the issue is SBI Capital Markets Limited. The shares are proposed to be listed on BSE and NSE.

The company will be investing over Rs. 177 crores to expand its manufacturing facilities by setting up a new integrated unit having all process of yarn dyeing, weaving and processing at Tarapur and garment manufacturing near Bangalore. Out of the total investments, the company proposes to utilize debt up to Rs. 100 crores. Mudra Lifestyle proposes to raise the balance amount through IPO.

The issue through 100% book-building process constitutes 26.62% of the post issue paid-up capital of the company. It has earlier made a pre-IPO placement of 1.92 mn equity shares to SIDBI Venture Capital Limited and State Bank of India. The net offer to public will constitute 25.29% of the post issue paid-up capital of the company.

For the fiscal year 2005-06, the company’s total income was Rs. 107 crores, while PAT was Rs. 9 crores.

Read the article in The Economic Times.

Makemytrip.com gets $13 mn from VC investors

Travel portal Makemytrip.com has raised $13 mn in a second round of funding. Helion Ventures, Sierra Ventures and existing investor SAIF Partners are the investors. The company has a projected turnover of Rs. 600 crores ($130 mn) for the current financial year, up from Rs. 200 crores ($42 mn) last year. Travel portals have been seeing a lot of money coming in of late. Recently, Travelguru.com raised $15 million from Battery Ventures and Sequoia Capital India. Cleartrip.com has also reportedly raised $8 million from DAG Ventures and Sherpalo Ventures.

Read ContentSutra.com for more.

SIDBI Venture to invest Rs. 30 crores in V&S International

SME Growth Fund of SIDBI Venture Capital Ltd. has invested 30 crores in Gurgaon-based textile manufacturer and exporter, V&S International Pvt. Ltd. The company supplies textiles and ready-made garments to retail chains in the US and Europe. SIDBI Venture Capital Ltd is the venture capital arm of the Small Industries Development Bank of India. It invests out of two funds, the SME Growth Fund and the Rs. 100 crore National Venture Fund for Software and IT Industry.
Of late, the private equity firms have shown a lot of interest in the textiles and apparels sector. KPR Mills, Koutons Retail are some of the firms that have received a round of PE funding.