Rajasthan-based Jindal Cotex (JCL), has filed its DRHP with Sebi on 21/8/2008 to enter the capital market with an IPO of 1,24,53,894 equity shares of Rs 10 each at a price to be decided through the 100% book building process at a later stage.
The issue comprises of promoters contribution of 12,03, 894 equity shares and a reservation of 500,000 equity shares to the employees of the company. The net issue to the public is of 1,07,50, 000 equity shares. The issue shall constitute 43% of the post issue paid-up capital of the company.
The company proposes to list its shares on BSE and NSE and the BRLM to the issue is Saffron Capital Advisors.
The objects of the present issue is to raise funds to part finance the setting up a new facility for manufacture of cotton yarn, yarn dyeing and garments and for investing in fully-owned subsidiaries - Jindal Medicot Ltd and Jindal Speciality Ltd.
The company proposes to use the proceeds from the issue to part finance the above mentioned project cost. It will deploy Rs134.79 crores for setting up the new manufacturing facility and Rs 82 crores for investments in its subsidiaries which are setting up their own independent projects. Also to part finance the project cost the company has availed of a term loan of Rs 91 crores from Oriental Bank of Ocmmerce and Punjab & Sind Bank. The company has also raised Rs 7.42 crores through issue of 7,42 010 equiyt shares of Rs 10 each at a premium of Rs 90 per share to the promoters of the company in March 2008.The company has also generated internal accruals of Rs 11.61 crores.
Presently the company is setting up the new cotton yarn, yarn dyeing and garments manufacturing facility in two phases in Ludhiana. Under phase I it is setting up the cotton yarn manufacturing facility with a capacity of 28,800 spindles. In phase II the company is adding a futher 21,600 spindles. It is also setting up the yarn dyeing facility with a capacity of 6 tpd and a garment unit with a capacity of 3,000 pcs per day.
The company's subsidiary Jindal Mdicot is setting up a facility to manufacture medical textile products like absorbent bleached cotton wool, cotton crepe bandages in Himachal Pradesh with a capacity of 5,000 tpa and the other subsidiary Jindal Speciality Textiles is setting up a facility to manufacture PVC laminated products for various applications like banner fabric, inflatable fabric for boats etc, tent andtarpaulin fabric and truck siders also in Himachal Pradesh.
The company is engaged in the business of manufacturing of acrylic, polyester, and polyester-
viscose, polyester cotton, combed and carded yarns, which are suitable for apparels,
suitings & knitted fabrics. The yarns produced by the company are used for made ups in apparels, hosiery & garment industry. The current installed capacity of JCL is 23,472 spindles for acrylic, cotton blended and polyester yarns. The company manufactures and sells yarns under the brand name Jindal. It has gradually increased the manufacturing capacities to fulfill the requirements of the domestic market. The company is exploring the international markets with the existing business and capabilities.
JCL has installed and commissioned a Suzlon make Wind Electric Generator (Wind Mill) of 1250KW capacity at Jaisalmer, in Rajasthan in Mach 2008. The entire power generated through this wind mill will be sold to Ajmer Vidyut Vitran Nigam Limited.