Date:16/12/2005 URL: http://www.thehindubusinessline.com/2005/12/16/stories/2005121603201400.htm

Back Ginni Filaments public issue opens on Dec 19

Our Bureau

New Delhi , Dec. 15

COTTON yarn and knitted fabrics manufacturer Ginni Filaments Ltd will tap the capital market with a 100 per cent book-built public issue opening on December 19.

The funds from the issue will be used to expand operations and to set up a garment manufacturing unit at Faridabad.

"The price band will be announced a day ahead of the opening of the issue," Mr Shishir Jaipuria, Managing Director of the company, said.

The issue will comprise promoters' contribution aggregating Rs 12 crore and a net offer to the public aggregating Rs 48 crore.

It will close on December 23.

The funds will be used to finance the Rs 204.24-crore project, including de-bottlenecking of the existing open-end spinning capacity, expansion of the ring spinning capacity and manufacture of non-woven fabrics at the company's existing plants at Chhata in Uttar Pradesh and Panoli in Gujarat.

The project cost for the manufacturing base in Faridabad will be Rs 8 crore with a capacity of making 52 lakh pieces of undergarments per year. Production will begin in April 2006.

Ginni Filaments is a 100 per cent export-oriented unit (EOU) and in the first half of this year ending September 30, the company earned a net profit of Rs 4.17 crore on an income of Rs 97.09 crore.