Ahmedabad based Chiripal Group's Nandan Terry has filed draft red herring prospectus (DRHP) with market regulator Sebi to raise Rs 255 crore initial public offering.
Nandan Terry may consider raise Rs. 40 Cr through a pre IPO placement which would be in consultation with the appointed lead managers to the issue. If Pre-IPO round is done, it will reduce the amount from the IPO issue size.
Use of proceeds from the IPO includes Rs 35.60 crore for part repayment/pre-payment of loans availed from lenders, for funding working capital requirements and general corporate proposes.
The company has reserved not more than 50 per cent of the issue for qualified institutional buyers, whereas non-institutional investors will have not less than 15 per cent shares allocated to them. The remaining 35 per cent portion will be allocated to retail institutional bidders.
Incorporated in 2015, Nandan Terry is a fully vertically integrated company engaged in principle business of manufacturing terry towels & toweling products. It enjoys presence in industries such as textiles, education, real estate, packaging and chemicals and offers a wide spectrum of manufacturing, contract manufacturing, trading, distribution and service-related activities to sectors like textiles, education, packaging, infrastructure, petrochemical besides others.
It procures cotton bales from domestic and international markets and manufacture cotton yarn which are in turn used as a raw material in manufacturing of terry towels & toweling products. Apart from manufacturing terry towels & toweling products, they also sell the cotton yarn manufactured at its units to achieve better sales realizations. Additionally, it also sells woven fabric cloth in open market manufactured at its units as per the demand scenario prevailing in the industry.
The company has five manufacturing units and a facility are situated in the state of Gujarat, and caters to manufacturing of terry towels & toweling products in business - to - business (B2B) segment. Its in-house research and design facility has enabled it to expand its sales internationally to countries including United States of America, Canada, Israel, Germany, Hong Kong, Sweden, United Kingdom and Australia.
It uses latest technology and machinery procured from major suppliers/distributors in India and abroad and its plant is equipped with 102 Looms out of which 24 are Jacquards looms and 78 are Dobby Looms. The processing section is equipped with latest machines in the finishing section to make the perfect towel. Even the folding and packing processes are carried on latest machines as it guarantees quality check and precision as these modern machineries also help in maintaining high quality standards.
At present, promoters Devkinandan Corporation LLP, Chirpal Exim LLP each holds 26.35%, and individual Promoters Vedprakash Chirpal and Brijmohan D Chirpal hold 0.43% respectively. Others promoters Savitridevi V Chiripal, Jyotiprasad Chiripal, Jaiprakash Chiripal, Pritidevi Chiripal and Ronak Brijmohan Chiripal together hold 26.09% in the company.
Nandan Terry's revenues from operations for fiscal 2021 stood at Rs 538.52 crore, a 25.42% year-on-year increase compared to Rs 429.39 crore in fiscal 2020, primarily due to increase in sale of towel and toweling products and sale of cotton yarn. Its annual profit for fiscal 2021 stood at Rs 23.38 crore, which increased from Rs 1.22 crore. For the six months ended September, its revenue was Rs 501.81 crore and profit was Rs 30.62 crore.
Holani Consultants Private Limited and BOI Merchant Bankers Limited are the book running lead managers for the issue and Link Intime is the registrar.