Jindal Cotex, manufacturer of acrylic and polyester yarns, will enter the capital market with an initial public offering of 1.24 crore shares. The issue will open on August 27 and will close on September 1, and the price band has been fixed at Rs 70 – 75.
The company plans to raise a maximum of Rs 93 crore through the issue. The majority of the funds raised will be used for the company’s entry into technical textiles space.
The investments will be made in the company’s wholly owned subsidiaries Jindal Medicot and Jindal Speciality Textiles to be set up in Himachal Pradesh. The company will also use the funds to set up a new facility to expand its yarn capacity.
Qualified institutional buyers will be allotted 50 per cent of the issue, 15 per cent to non-institutional investors and 35 per cent to retail investors.
The issue has got a rating of 3/5 from rating agency Brickwork Ratings which indicates average fundamentals. Saffron Capital Advisors are the Book Running Lead Managers to the issue.
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