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Indian Bank reverses stand on IPO
Chennai: The Indian Bank's new Chairman and Managing Director, Dr. K.C. Chakrabarti has reversed his predecessors stand regarding the bank's entry into the markets with an IPO in September this year.

According to the CMD, the present capital structure did not permit the bank to go to the market, which effectively reversed his predecessor, B.N Rao's stand that the bank would definitely come out with an IPO this year, perhaps in September.

Dr Chakrabarti observed that the bank's capital adequacy ratio was at a comfortable 14.6 per cent, and even after the Basel-II norms came into force, the capital adequacy would be at around 12 per cent (against the regulatory requirement of 9 per cent), he said. He said that the bank would consider an IPO only after the capital structure was restructured.

Indian Bank turned in a net profit of Rs408 crore last year. The bank has accumulated losses of Rs3,830 crore.

A `restructure of the capital' would mean setting off accumulated losses against the capital. The bank then would be in a position to present investors a balance sheet untainted by held-over losses and a thin capital base.
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The Shirt Company plans IPO to fund expansion
Mumbai: The Shirt Company (India) Pvt Ltd is seeking to come out with an initial public offering (IPO) in the next couple of months in order to raise Rs45 crore from the market. The funds would be raised towards setting up a textile processing mill and garment unit in Navi Mumbai.

The garment exporter is the licensee of Barbie in India
The move, when it fructify's, will dilute the promoters' stake by 30 per cent.

According to the company, the textile-processing mill will have printing, dyeing and bleaching facilities, and will manufacture about 8 lakh metres of fabric a month. The company will increase productivity by adding another 3-4 lakh garments a month.
The mill is expected to replace 80 per cent of the company's fabric imports.

Company officials said that Navi Mumbai offers quality infrastructure and will reduce delivery times considerably as the township has port and air links nearby.

Of the Rs45 crore that will be brought in by the IPO, Rs20 crore will go towards setting up the mill and the garment unit with about 500 sewing machines. The rest is expected to go towards working capital costs.

The plant is expected to be operational by October 2006.

In the first year of business, the Barbie stores had notched up sales of Rs6 crore and the company hopes to more than double this figure in 2005-06.
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