Thursday, August 23, 2007

Bombay Rayon may raise Rs 500cr via FPO

Bombay Rayon Fashions is embarking on a three-pronged modernisation, expansion and vertical integration strategy for its garments manufacturing facilities.The company is expected to raise the required funds through a secondary offering in the next three months. Market sources said the company is eyeing Rs 450-500 crore as gross proceeds from a follow-on public offer (FPO).

While the quantum of shares to be floated is not clear, sources indicated that rupee term loans from banks and other financial institutions could not be ruled out as a buffer against the prevailing market conditions.

About 70% of the funds raised through the secondary issue and other sources would be used for augmenting capacities in Leela Scottish Lace, the erstwhile garments business of Leela Ventures, which was acquired by Bombay Rayon for Rs 155 crore in July.

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