KPR Mills on Expansion mode !
The IPO of textile company KPR Mills Ltd. has barely managed to get oversubscription due to the seemingly expensive pricing and concerns over a weak operating environment. The company received bids for 7.03mn shares versus the issue size of 5.9mn shares. The QIB portion has been subscribed 1.44 times while the Non-institutional part has been subscribed over 2 times. The retail portion is subscribed by just 0.4 times.KPR Mills is raising about Rs1.5bn from the market to fund an expansion project at Arasur near Coimbatore. About Rs 900mn from the issue proceeds will be utilised to expand its garmenting and fabric processing facility. It will also invest some of the funds in a new knitting facility. The project, expected to be completed by the end of the current fiscal year, is set to double the company's capacities across segments.
