Date:11/01/2006 URL: http://www.thehindubusinessline.com/2006/01/11/stories/2006011102811500.htm

Back Raj Rayon public issue opens tomorrow

Our Bureau

Mumbai , Jan. 10

YARN manufacturer Raj Rayon Ltd is entering the capital market with a public issue of 85 lakh equity shares of Rs 10 each, through 100 per cent book building process. The price band is fixed at Rs 55-65 per equity share of Rs 10 each. The company aims to raise Rs 55 crore through this issue which opens on January 12 and closes on January 18.

The number of shares offered to the public, after reservation for permanent employees of the company and shareholders of group companies, is 68 lakh equity shares.

Mr Gourishankar Poddar, Chairman and Managing Director, Raj Rayon Ltd, addressing media persons on Monday said the net proceeds of the issue would be utilised for part financing its backward integration project for the manufacture of partially oriented yarn.

UTI Securities Ltd is the book running lead manager to the issue and Centrum Capital Ltd is the co-book running lead manager.

The company's stock closed flat at Rs 76.52 (Rs 76.40) on Tuesday.