Momai Apparels plans to raise Rs 30cr IPO

Momai Apparel today said that it is making a fresh issue of Rs 30 crore through the book-building route with a price band of Rs 78 to Rs 90, reported media.

Since the company has privately placed about 17.09 lakh shares (worth Rs 13.33 cr) with 83 high net worth public investors (HNIs) at Rs 78 a piece only a couple of weeks ago, it is most likely to fix the IPO price at the lower end of the band (Rs 78), reported media.

In that case, the offer quantity would be 38.46 shares which would constitute 26.66 per cent of the post-IPO capital of the company.

As per the offer document, Momai proposes to utilize Rs 7 cr towards acquisition of land for setting up new manufacturing facility and Rs 24 crore is earmarked for long term working capital.

The new factory construction and plant & machinery are estimated to cost Rs 12 cr and Rs 7 cr respectively which are proposed to be met with a combination of bank debt, private placement proceeds and own funds.