The Hindu : Business : Bombay Rayon price band fixed at Rs. 60-70

Online edition of India's National Newspaper
Thursday, Nov 10, 2005

Business

Business

Bombay Rayon price band fixed at Rs. 60-70

Corporate Reporter

CHENNAI: Bombay Rayon Fashions is creating an integrated facility for yarn dyeing, weaving, processing and garment manufacturing at the Apparel Park, Doddaballapur, near Bangalore. The project, costing Rs. 161.72 crore, will have a capacity of 2,000 kg per day of yarn dyeing, 48 looms for weaving, 93,999 metres a day of processing and 22,000 pieces a day of garments. The company is trebling the garment manufacturing capacity from the existing 6,000 pieces a day.

Addressing presspersons in connection with the company's initial public offer of 13.48 million equity shares of Rs. 10 each through the book-building process, A. R. Mundra, Executive Director, Finance, said the net interest burden was only 3.5 per cent of the total interest outgo of eight per cent, as the company was eligible for five per cent interest subsidy. It will also be eligible for an additional incentive of 10 per cent capital subsidy for investments in specified textile processing machinery. The price band has been fixed at Rs. 60-70.

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