SP Apparels gets IPO clearance from SEBI

SP Apparels gets Securities and Exchanges Board of India (SEBI) clearance for its Rs 215 crore IPO. The company filed its draft red herring prospectus (DRHP) with regulatory in December 2015.

SP Apparels plans to garner up to Rs 215 crore through fresh issue of shares, while its existing shareholders will divest 9 lakh equity shares, according to the DRHP filed with SEBI. The company proposes to list its shares on BSE and NSE.

The proceedings of the IPO raised money will be utilised for repayment of debt, expansion and modernisation of manufacturing facility at Salem in Tamil Nadu and opening of new stores for the sale of 'Crocodile' products. The funds will be used for addition of balancing machineries for its existing dyeing unit at Sipcot, Perundurai in Tamil Nadu and other general corporate purposes.

On financial front, SP Apparel’s revenue stood at Rs 129 crore as of Q1FY16. On segmental revenue front, the company earned 79.71 per cent from outside India and remaining 20.25 per cent from India as of 30 June 2015. Its EBITDA is at Rs 15.8 crore in first quarter of FY16. SP Apparel reported net profit of 7.09 crore in Q1FY16.

SP Apparels is manufacturer and exporter of knitted garments for infants and children in India. The company’s products are manufactured at its integrated facilities. It allows the company to provide end to end garment manufacturing services from greige fabric to finished products. SP Apparels also manufactures and retail menswear garments in India under the brand ‘Crocodile’. The company have exclusive right to manufacture, distribute and market products under the ‘Crocodile’ brand in India.