Cantabil comes up with an IPO

Friday, 01 October 2010

Cantabil Retail which makes apparel under the brands Cantabil and La Fanso has entered the capital market with an IPO. The company plans to raise Rs 105 crores through the issue. The issue got a good response from the market. The price band was fixed at Rs 127 to Rs 135. From the proceeds of the issue, the company intends to utilize Rs 32 crores towards the establishment of a new manufacturing facility, Rs 25 crores will go towards expansion of its retail network, Rs 30 crores towards additional working capital and Rs 20 crores for repayment of debt.

Cantabil based in New Delhi offers shirts, skirts, T-shirts or sweatshirts, trousers, underwear, jackets. Right now there are 411 EBOs. While the flagship brand Cantabil offers a complete range of formal wear, party wear, casuals and ultracasual clothing for men, women and kids in the middle income group, the La Fanso brand caters to the men’s segment in lower to middle income group and focuses on casual, ultra casual and formal wear. In addition to apparels, the company also retails accessories such as ties, belts, socks, caps and handkerchiefs under its two brands. The company has two manufacturing facilities and one finishing facility in Delhi with an in-house installed capacity of manufacturing 1.3 million pieces of men’s wear and a finishing capacity of 2.55 million pieces of men’s, women’s and kid’s wear a year.