-Public Issue opens December 3
-Price Band of Rs. 630 to Rs. 645 per Equity Share
Monte Carlo Fashions Limited (the “Company” or “Issuer”) anchor opens on Tuesday 2nd December 2014. The Issue will open on December 3, 2014, an initial public offering (“IPO) of 5,433,016 equity shares of face value of Rs. 10 each (the “Equity Shares”) for cash at a Price Band of Rs. 630 to Rs. 645 per Equity Share through an Offer for Sale by Selling Shareholders (the “Offer”). Bids can be made for a minimum of 23 Equity Shares and in multiples of 23 Equity Shares thereafter. The Offer shall constitute 25% of the post Offer paid-up equity share capital of the Company.. The Bid/ Offer closes on December 5, 2014.
The Offer is being made through the Book Building Process, in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”) where 50% of the Offer will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Category”), provided that the Company may allocate up to 60% of the QIB Category to Anchor Investors, on a discretionary basis (the “Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Offer Price. Further, 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Offer Price.
Further, not less than 15% of the Offer will be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer will be available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Retail Individual Investors may participate in this Offer through the ASBA process by providing the details of the ASBA Accounts in which the corresponding Bid Amounts will be blocked by the SCSBs. QIBs (excluding Anchor Investors) and Non-Institutional Investors can participate in the Offer only through the ASBA process. Anchor Investors are not permitted to participate in this Offer through the ASBA process.
The Equity Shares issued though the Red Herring Prospectus are proposed to be listed on the Stock Exchanges – BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).
The Book Running Lead Managers (“BRLMs”) to the Offer are SBI Capital Markets Limited, Axis Capital Limited, Edelweiss Financial Services Limited and Religare Capital Markets Limited.
Note to editor
Launched in 1984 as an exclusive woollen brand by Oswal Woollen Mills Limited (“OWML”), one of the Group Companies, Monte Carlo is one of the leading Indian apparel brands based on revenue (Source: Technopak Report, 2014). ‘Monte Carlo’ has been recognized as a ‘Superbrand’ for woollen knitted apparel in each edition of Consumer Superbrands India since its first edition in September 2004. It primarily caters to the premium and mid-premium branded apparel segment for men, women and kids, offering a comprehensive line of woollen, cotton and cotton-blended knitted and woven apparel and home furnishings through ‘Monte Carlo Exclusive Brand Outlets’ and MBOs, including a network of national chain stores under the ‘Monte Carlo’ brand. It operates two manufacturing facilities in Ludhiana, Punjab, one for woollen apparel products and one for cotton apparel products. The manufacturing facilities include facilities for product development, a design studio and sampling infrastructure. Almost all its woollen knitted products are manufactured in-house at the manufacturing facility. It has also recently commenced in-house manufacturing of some of its cotton t-shirts and thermals in April 2014. In June 2012, Samara Capital, a Mauritius based India focused private equity firm, through its affiliate, KIL, acquired a stake in the Company and currently holds 18.51% of the pre-Offer capital of the Company.
Monte Carlo is an established leading all-season Indian apparel brand with a diversified product range as well as nationwide sales and distribution network. Its association with OWML and other Group Companies provides it with stable and reliable sourcing of raw materials and manufacturing capabilities. It has a strong back-end with in-house design and manufacturing, and long-term relationships with third-party manufacturers. It has an experienced management team. The Company’s strategy is to continue to focus on the growth of cotton and cotton-blended apparel to establish pan-India presence. It seeks to strengthen manufacturing capacity and sales network by opening ‘Monte Carlo Exclusive Brand Outlets’. It intends to focus on expansion of kids wear under the ‘Tweens’ range. It will continue to enhance the brand in the apparel industry. It may also explore expansion through acquisition of a brand or business in the apparel industry.
Disclaimer
MONTE CARLO FASHIONS LIMITED is proposing subject to receipt of requisite approvals, market conditions and other considerations, a public offer of its Equity Shares and has filed the RHP with the Registrar of Companies, Punjab, Chandigarh and Himachal Pradesh. The RHP will be available on the website of SEBI at www.sebi.gov.in and on the websites of the Book Running Lead Managers at www.sbicaps.com, www.axiscapital.co.in,www.edelweissfin.com and www.religarecm.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, refer to the RHP including the section titled Risk Factors on page 11 of the RHP. This publication is not being made in and may not be distributed or sent into the United States, Canada, Australia or Japan. This announcement is not an offer for sale of securities in the United States. The Equity Shares have not been and will not be registered under the U.S Securities Act of 1933, as amended (the “U.S Securities Act”)and may not be offered or sold within the United States (as defined in Regulation S of the U.S Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S Securities Act and applicable state securities laws. There will not and is not currently intended to be any public offering of securities in the United States. Accordingly, the Equity Shares are only being offered and sold outside the United States in offshore transactions in reliance on Regulation S of the U.S Securities Act and the applicable laws of the jurisdiction where these offer and sales occur.
RSVP:
Ms. Purvi Shah/ Ms. Tabassum Mukadam,
Adfactors PR
M: 9833431331, 9930040970, 9820531932
