Birla Cotsyn

Birla Cotsyn, a Yash Birla group company has filed its DRHP with SEBI on 27/12.2007 to enter the capital market with a public issue to raise Rs.144.18 crore.

The issue is to be made through a 100% book building process, where, upto 50% of the net issue to the public shall be allocated on a proportionate basis to QIBs.

The company proposes to list its shares on BSE and NSE. Allbank Finance is the lead manager to the issue.

The Yash Birla group is one of the leading industrial groups having diversified interests in steel pipes, machine cutting tools, iron castings, multi-purpose engine pumps, electrical appliances, textiles, carpets, furnishing, cotton ginning etc. The major companies in the group includes Zenith Birla (India), Birla Power Solution, Dagger Forst Tools, Birla Precision Technologies, Birla Electricals, etc.

The company which is engaged in cotton ginning, processing and oil expelling at its facilities in Khamgaon, Ghatanjali and Dhulia is presently in the process of implementing a greenfield plant at an outlay of Rs.315 crore at Khamgaon near its existing plant. Once completed, the company would have a capacity of 60,000 spindles. The company would manufacture open-end rotor-based cotton yarn with an installed capacity of 1,728 rotors and weaving of grey fabric with 114 looms. The company would also start manufacturing its own branded garments in 2008 and plans to put up 30 retail outlets in the country. The government of Maharashtra has conferred mega project status to the project which entitles it to sops amounting to Rs.50 crores.

The company intends to use the proceed of the issue to part finance its integrated textile project at Khamgaon and Malkapur; to set up a garment manufacturing plant and to establish retail outlets.

For the year ended March 31, 2007, the company posted total income of 56.15 crores, with a net profit of Rs.2.57 crore. For the quarter ended June 30, 2007, it recorded a revenue of 18.04 crore with a net profit of Rs.0.79 crores. Book value per equity share as on March 31, 2007 and June 30, 2007 was Rs.23.06 and Rs.25.22 respectively.