Shirdi Industries to raise Rs50-cr via IPO
New Delhi: Interior furnishing products maker Shirdi Industries is coming to capital market with an initial public offering of 65,00,000 equity shares of Rs10 each in a price band of Rs69 to Rs78 per share. The issue opens for subscription on June 29 and closes on July 5.

The company said it would raise Rs50 crore with the public issue to part-finance the expansion of its manufacturing capacity in Uttaranchal with a cost of Rs127.4 crore. The company said it is setting up additional capacities to manufacture medium density fibre board, particle board to touch a total of about 10 million square metres per year. It is also setting up capacities for production of flooring, laminated doors and furniture components. The company has availed itself of term loans of Rs56.5 crore for the plant, which is expected to commence production in December.

The company has chosen to set up its plant in Uttaranchal where it says it is assured of regular supply of wood and power at cheaper rates than in other States while the excise and income tax exemptions in the State are a bonus. Allianz Securities is the book running lead manager for the issue.

After the issue, the holding of the promoters and promoter group will get diluted to 65.38 per cent from the current holding of 88.43 per cent.
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