Bang Overseas has filed its DRHP with SEBI on 23rd July 07 to come out with a public issue of 35 lakh equity shares of Rs.10 each. Almondz Global Securities Ltd. (formerly Allianz Securities Ltd.) are BRLM.
The company ventured into ready-to-wear men's segment in 2000 by outsourcing manufacturing process and in turn selling it to various international brands. In 2002, the company launched its own brand Thomas Scott. The company started its own manufacturing unit in Bangalore in 2005 with capacity of 3.50 lakh pieces per annum while second unit with capacity of 3.60 lakh pieces per annum was started in 2006. The company market its products through 155 point of sales comprising of own retail outlets, large format stores and multi brand outlets.
For 10 months ended 31-01-07, the total income of the company was at Rs.56.52 crores with PAT of Rs.5.96 crores on equity of Rs.9.80 crores. The present equity of the company is Rs.10.06 crores which would rise to Rs.13.56 crores, post issue. Net worth of the company as at 31-01-07 was Rs.12.73 crores.
The company has now chalked out capex plan of Rs.58 crores mainly for setting up retail outlets across India, Brand building, setting up new apparel manufacturing unit and creating warehousing and logistic facilities. The company plans to have 100 retail outlets across the country with 50 company operated and 50 operated by franchisee. Presently, 9 outlets are operated by company while 1 is on franchisee. At Kolar district in Karnataka, the company is planning to set up an apparel manufacturing unit for Shirts & Tops and Trousers & Bottoms on total land area of 35 acres with constructed area of 1.40 lakh sq. ft. The company also proposes to create warehousing facilities at Mumbai, Delhi, Hyderabad, Chennai and Bangalore with total area of 40,000 sq. feet.
Considering its fund requirements, the price band is likely to be between Rs.180 to Rs.200 per share.