THE Ludhiana-based textile company, SEL Manufacturing, plans to come up with an IPO worth Rs 50 crore. The company will be floating 54 lakh shares in the market with a price band of Rs 80-90 per share. The issue will open on July 26 and will close July 31. Exim Bank has taken a 5% stake in SEL, which roughly translates to Rs 5 crore. Neeraj Saluja, MD, SEL Manufacturing, says, “As we are mainly into exports, our association with Exim Bank will give an international credibility to our businesses. This has opened new avenues for the company, and this is the second such development in the Indian textile industry.” The company proposes to expand its manufacturing capacities in garment manufacturing, knitting and spinning at a total cost of Rs 184.57 crore. SEL plans to enter the capital markets with a public issue of 53,99,210 equity shares of Rs 10 each through 100% book building process for funding the equity component of the project cost. UTI Bank has been mandated as the book running lead manager for the IPO. The company has already received Sebi observations with regard to the IPO. After the expansion of the project, the company will consolidate garmenting capacities to manufacture 6 million pieces per year, fully backed by facilities for spinning, fabric knitting and processing. The financial appraisal of the expansion project has been done by SBI Project Uptech and the debt component of the project cost of Rs 103.79 crore is fully tied up under technology upgradation fund scheme (TUFS). To cater to its exports markets, SEL has opened representative offices in Russia and Dubai. Presently, a majority of the company’s production of garments is exported to Russia and the UAE. It is operating with a consolidated capacity to manufacture 4.5 million garment pieces per annum. Its capacities in cotton and combed yarn manufacturing, fabric knitting and yarn dyeing are at 29,856 spindles per annum, 1,950 tonnes of fabric knitting and 3,000 tonnes of yarn dyeing per annum respectively. For the fiscal 2005-06, SEL had consolidated net revenue of Rs 142.51 crore and profit after tax (PAT) of Rs 13.62 crore.