Lovable Lingerie IPO, March 8 – 11, 2011, Rs. 195 – 205.
Lovable Lingerie is entering capital market with a public issue of 45.5 lakh equity shares of face value of Rs 10 each on March 8. Company has fixed a price band of 195-205 rupees.
The issue would constitute 27.08% of the post issue paid-up capital, which will close on March 11.
Last month, the company had raised 200 million rupees via a pre- IPO placement, by placing 1 million shares with SCI Growth Investments.
The company plans to use the proceeds from the IPO for a manufacturing facility, brand promotion and retail expansion.
Anand Rathi Financial Services is the sole manager to the issue.
The company’s brands include ‘Lovable’, ‘Daisy Dee’ and ‘College Style’ which are retailed through 103 distributors in India. Lovable has three manufacturing facilities – two in Bengaluru, with an installed capacity of 60 lakh pieces p.a. and another unit in Uttarakhand with an installed capacity of 7.5 lakh pieces p.a.
The firm will use the issue proceeds to set up a manufacturing facility to create additional capacity at Bangalore, where it will invest Rs 23 crore. Lovable also plans to invest Rs 25 crore in its joint venture Lovable Lifestyles Private Limited, which will market, manufacture, distribute and direct retail in the super premium lingerie segment. Lovable will hold 90% stake in the JV with London’s Lifestyle Galleries. It will also spend additional amount on brand building and setting up exclusive brand outlets (EBOs).
Book running lead managers to the issue is Anand Rathi Securities Limited .
Registrar of the Issue : Link Intime (India).
Credit Analysis & Research Limited (CARE) has assigned a grade 3 for the proposed issue of the company. The factors for the aforesaid grading are the promoter’s significant experience in the industry, established and wide distribution network, globally successful brand, strong financial profile characterised by comfortable gearing levels, healthy interest-coverage ratio and improvement in margins in FY10.
Lovable Lingeries Limited IPO has got 3 out of 5 and this rating/grading is Average fundamentals for a women’s innerwear manufacture company IPO. The grade 3 indicates that the fundamentals of the IPO are Average compared to the other listed securities in India. The company is entering into primary market with an Initial Public Offer (IPO) of 4,550,000 Equity Shares of Rs 10 each. The premium of the issue will be decided through a 100% Book Building Process.
Promoted by L Vinay Reddy in 1987, the Company’s brands ‘Lovable’, ‘Daisy Dee’ and ‘College Style’ are retailed through 103 distributors in India. The company has three manufacturing facilities – two in Bengaluru, with an installed capacity of 60 lakh pieces p.a. and another unit in Uttarakhand with an installed capacity of 7.5 lakh pieces p.a. The Company has recorded turnover of over Rs. 86.95 crores and a net profit after tax of Rs. 10.55 crores in FY 2010.
The Company was incorporated in the year 1987 and is one of India’s leading women’s innerwear manufacturers. The Company’s products include brassieres, panties, slips / camisoles, homewear, shapewear, foundation garments and sleepwear products. The Company’s flagship brands are “Lovable” and “Daisy Dee”. The Company acquired the brand “Lovable” from Lovable World Trading Company, USA on an exclusive basis for the territories of India, Nepal, Sikkim and Bhutan. The women’s innerwear products manufactured under the brand “Lovable” cater to the premium segment market in India. “Lovable” is amongst the top three most preferred brands in women’s innerwear in India (Source: CARE Report titled the “Indian Lingerie Industry”). As part of its growth strategy, the Company has diversified their portfolio of brands and acquired brands like “Daisy Dee” to cater the mid women’s innerwear segment market in India and also acquired the brand “College Style” to cater to the young women segment of India. The Company also has its design studio since 1996 which was started and managed by their designers who were trained in the women’s innerwear design at Lovable USA’s studio at Atlanta.
Lovable Lingerie IPO Allotment Status Book running lead manager to the issue is Anand Rathi Securities Limited .
Registrar of the Issue : Link Intime (India). Please Note that expected allotment date is 21-Mar-2011.
You may check its allotment status from here.
Lovable Lingerie IPO Listing Date
Open Date 08-Mar-2011
Close Date 11-Mar-2011
Allotment Date 21-Mar-2011
Refund Date 22-Mar-2011
Listing Date 22-23-Mar-2011 (Expected)