Reid&Taylor’s $250 mn IPO by 2011

Nitin Kasliwal-led Reid & Taylor is 75 per cent owned by SKNL while the balance is held by Singapore’s GIC,a sovereign fund.

Post-issue,SKNL’s holding will come down to around 60 per cent while GIC proposes to off-load around three to four per cent through the IPO,Kasliwal said.

The IPO proceeds will be used to fuel its growth and also retire a part of SKNL’s debt,he said.

The textile major has already appointed seven bankers for the IPO. These are JP Morgan,UBS,HSBC,Deutsche Bank,JM Financial,Edelweiss and Antique.

Reid & Taylor posted a turnover and PAT of Rs 984.94 crore and Rs 202.94 crore,respectively,in FY10.

The group’s consolidated debt presently stands at Rs 2,800 crore and Kasliwal said that it is proposed to retire around Rs 400 crore debt with the IPO proceeds.

SKNL has also successfully raised USD 50 million by issuing fresh shares to Qualified Institutional Buyers (QIBs).

“We received an order-book of around 2.5 times the base issue size of USD 25 million and opted to exercise the over- allotment option of USD 25 million,” he said.

The shares here were sold at Rs 80 a piece.

Proceeds of this will be used to fuel business growth of SKNL in terms of capacity,retail and brands (both brand- building and new launches),Kasliwal said.

Around Rs 80 crore will be used to retire debt as well,he said.

SKNL also plans to set-up a shirt-manufacturing facility in the next six to eight months.

“This will be a high-value product and we plan to set up the facility in either Karnataka or Gujarat,” he said.