Abstract:
Koutons Retail India came out with the Initial Public Offering in order to raise capital that could be used for establishing more branch outlets and for enhancing the manufacturing capacity of the company. The company decided to sell its' 3,474,439 equity shares through Net Public Issue.
Koutons Retail India IPO refers to that Initial Public Offering of Koutons Retail India Limited, which scheduled to open on 18th September, 2007 and close on 21st September, 2007. Through this Initial Public Offering, the company aimed at raising capital worth 146 crores of rupees.
Details of the Initial Public Offering
The company declared that in this Initial Public Offering, 3,474,439 equity shares would be sold through Net Public Issue. Among the total equity shares, Koutons Retail India reserved 50,000 shares for its' own employees. The company informed that the Net Public Issue would constitute 11.37% of the post issue paid up capital.
The company fixed the Price Band for its' shares as 370 rupees to 415 rupees per share. The face value of the equity shares of the Koutons Retail India was rupees 10. It was decided that the company would sell its' equity shares at a price level, determined through the 100% book building process.
Koutons Retail India Limited appointed J.M. Financial Consultants Private Limited as the BRLM or Book Running Lead Manger for this Initial Public Offering. The Co-BRLM of this IPO deal was Karvy Investor Services.
The shares of the Koutons Retail India Limited was proposed to be listed on BSE(Bombay Stock Exchange) and NSE(National Stock Exchange).
Reason behind the IPO
Koutons Retail India Limited decided to come out with an initial public offering in order to raise substantial amount of capital that could be used for setting up more brand outlets. The company also planned to use the raised capital for buying manufacturing units and manufacturing equipments in order to enhance the manufacturing capacity of the company. The company also thought of utilizing the raised capital for the general corporate purposes of the company.