The Hindu Business Line : Jindal Cotex public issue opens on Aug. 27, price band at Rs 70-75

Mr Sandeep Jindal (left), MD, Jindal Cotex Ltd, with Mr R. Sankara Krishnan, Director, Saffron Capital Advisors Pvt Ltd, at a press conference in Mumbai on Friday. –

Our Bureau

Mumbai, Aug. 21 Jindal Cotex, manufacturer of acrylic and polyester yarns, will enter the capital market with an initial public offering of 1.24 crore shares. The issue will open on August 27 and will close on September 1, and the price band has been fixed at Rs 70 – 75.

The company plans to raise a maximum of Rs 93 crore through the issue. The majority of the funds raised will be used for the company’s entry into technical textiles space. The investments will be made in the company’s wholly owned subsidiaries Jindal Medicot and Jindal Speciality Textiles to be set up in Himachal Pradesh. The company will also use the funds to set up a new facility to expand its yarn capacity.

Qualified institutional buyers will be allotted 50 per cent of the issue, 15 per cent to non-institutional investors and 35 per cent to retail investors.

The issue has got a rating of 3/5 from rating agency Brickwork Ratings which indicates average fundamentals. Saffron Capital Advisors are the Book Running Lead Managers to the issue.

Cox and Kings

Tour and travel operator Cox and Kings has filed its Draft Red Herring Prospectus with SEBI on Friday for its maiden public issue. This is the second time the company has filed its DRHP; the earlier one was filed in January 2008.

The company will issue a total of 1.84 crore shares, of which 30.46 lakh shares will be an offer for sale by Lehman Brothers Opportunity, Deutsche Securities Mauritius and Merrill Lynch Capital Markets Espana.

As per the DRHP, Cox and Kings will use Rs 129.6 crore from the proceeds to repay its loans and Rs 150 crore for acquisitions and other strategic initiatives.

It will also use the funds to invest in overseas subsidiaries and in its corporate offices and for upgrading its existing operations.