SP Apparels, manufactures and exports of knitted garments for infants and children and force behind menswear brand Crocodile has launched. Established in 1989, it operates 20 manufacturing facilities and reported a net profit of Rs 10.1 crores in fiscal 2014-15. It is a fully integrated textile company with operations spanning from spinning to retail and fiber to fashion.
The company has filed draft papers with capital markets regulator Sebi to raise at least Rs 215 crores through its initial public offer. SP intends to garner up to Rs 215 crores through a fresh issue of shares, while its existing shareholders will offload 9,00,000 equity shares.
Proceeds from the fresh issue will be utilised for repayment of debt, expansion and modernisation of its manufacturing facility at Salem in Tamil Nadu and opening of new stores for the sale of Crocodile products. The funds raised will be also used for addition of balancing machinery for its existing dyeing unit and other general corporate purposes. As of November 2015, its aggregate outstanding debt was Rs 251.8 crores comprising long term borrowings, short term borrowings and current maturities of long term borrowings. The company expects to realise the benefits of listing of the equity shares on the stock exchanges.