Cantabil Retail India, the discount retailer, plans to raise Rs 105 crore through its initial public offering (IPO) which opens on September 22. The price band has been fixed at Rs 127-Rs 135 per share. The stake would be 48%, after the public issue which will be through a 100% book-building process, wherein at least 50% will be allocated on a proportionate basis to qualified institutional buyers (QIB).
"With the proceeds of the IPO, we plan to set up 180 stores across the country, with prime concentration on southern region, states like Tamil Nadu, Kerala and Karnataka”, said Vijay Bansal, Chairman and MD, Cantabil Retail.
“While around Rs 32 crore will be used towards establishment of a new manufacturing facility, the rest of the IPO proceeds will be used towards working capital and for repayment of debt,” Bansal added.
The company’s current debt is Rs 60 crore. Cantabil Retail is in the business of designing, manufacturing and retailing of readymade garments and accessories, with 411 retail outlets spread across India.