Gini & Jony (GJL), engaged in the manufacturing, designing, branding and selling of ready-made apparels, primarily for kids, has filed its DRHP with SEBI in 9th May, 08 to enter the capital market with an IPO of 30 lakh equity shares of Rs 10 each at a price to be determined at a later stage through the book building process. The issue will constitute 25.04% of the fully diluted post issue paid-up equity capital of the company.
The company proposes to list its shares on BSE and NSE. The BRLM to the issue is Edelweiss Capital.
The object of the issue is to set up garment manufacturing facilities; invest in the company's wholly-owned subsidiary - GJ Freedom Fashion (GJFFL), which is undertaking expansion of its retail network; expand the company's retail network; upgraduation of its infrastructure and for general corporate purposes.
The issue proceeds are to be disbursed as follows: Rs 44.58 crore for setting up a garment manufacturing facility; investment of Rs 57.19 crore in subsidiary - GJFFL; Rs 8.80 crore for expanding retail network and upgradation of IT infrastructure.
Gini & Jony Apparel, which owns ' Gini & Jony' kids lifestyle brand, proposes to increase its production capacity from the current 18 lakh pieces a year to 27 lakh pieces from the next year in its two plants at Daman and Baddi in Himachal Pradesh.
The company's distribution channel broadly comprises of network of exclusive brand outlets (EBO), mix of distributors, shop-in-shops (SIS) and factory seconds outlet (FSO). Its wholly owned subsidiary, GJFFL distributes the products through its network of exclusive brand outlets. As on Mar. 31, 2008, its pan-India distribution network is spread over 108 cities comprising 60 EBO, 28 distributors, 124 SIS and 38 FSO. Its 28 distributors sell the products to 706 MBO, across India.
Gini & Jony has its sales offices at Gurgaon & Kolkata and support office at Tirupur in Tamil Nadu which oversee the marketing and distribution functions of the company.
The company is also a vendor to various schools in India for supply of school uniforms under its brand 'Gini & Jony - Knowledge Wear'. For FY 2008, the company had executed orders for 29 schools. Currently, as on March 31, 2008, it has received orders from 39 schools.
The company has a Licensee Agreement with Levi Strauss (India) Pvt Limited, under which it designs, manufactures and markets kidswear under the name of their kidswear Brand "Levi's Sykes Junior" The company is also all India distributors of Benetton India Private Limited and Reebok India Company for their kidswear category in India.
For the year ended 31st March 2007, the company's income was Rs 107.98 crore and net profit was Rs 8.50 crore as compared with an income of Rs 75.45 crore and net profit of Rs 5.83 crore for FY06. And for 9 months ended Dec. 31, 2007, the income stood at Rs 116.57 crore and net profit was Rs 8.79 crore.