Upcoming IPO: Is Monte Carlo going to be Lovable?
Woolen and cotton garments manufacturer Monte Carlo Fashions Ltd (MCFL) is entering the capital market with its initial public offering of nearly 54.33 lakh equity shares of Rs 10 each in price band of Rs 630 to Rs 645 per share. In the price band, the issue will lead to Rs 342 crore -350 crore being mobilized. The issue will constitute 25% of the post-issue paid up capital. The issue will open on 3 December 2014 and will close on 5 December 2014. Although the IPO has not been graded by any credit rating agency, that’s no reason for investors to look away from this IPO. MCFL is backed by private equity firm Samara Capital which invested Rs 175 crore in the company in tranches nearly two years ago. This investment gave Samara Capital a stake of 18.5% in the company valued at Rs 945 crore. With the listing, the valuation is expected to go up to Rs 1,400 crore, translating into a cool 48% gain over two years. Still, Samara Capital would retain 11% stake in Monte Carlo after part e