Cantabil announces IPO

Cantabil gears up to enter Capital Market

Cantabil Retail India Limited, the apparel manufacturer and retailer, which operates under brand name Cantabil and La Fanso proposes to enter the capital markets on 22nd September, 2010 with its Initial Public Offer ("IPO") of Rs.1,050 Million, equity shares of Rs. 10/- each.


The company has fixed the price band of the issue at Rs. 127 to Rs. 135 per equity share. SPA Merchant Bankers Limited is the sole Book Running Lead Manager for the Issue and Beetal Financial & Computer Services (P) Limited is the Registrar to the Issue.


The Company intends to utilize Rs. 320.25 million of the issue towards establishment of new manufacturing facility, Rs. 249.75 million towards expansion of its retail network, Rs. 300 million towards additional working capital and Rs. 200 million for repayment of debt.


Cantabil Retail India Ltd, which operates in a total retail space of 3,13,000 sq ft, has a total of 411 exclusive retail outlets, with 270 outlets of Cantabil and 141 stores of La Fanso respectively, said Mr.Vijay Bansal, CMD, Cantabil Retail. The company which has 3 in house manufacturing facility and 4 warehouses will invest Rs 30 crore in the 4th manufacturing facility to be set up in Bahadurgarh having a capacity to churn 3 lakh pieces per month. The current capacity stands at 1 lakh piece per month.