House of Pearl Fashions Ltd IPO (House of Pearl IPO) Detail

Objects of the Issue:

The Company intends to use the Net Proceeds for the following purposes:
1. Investment in its subsidiary companies to increase the production capacity of the Group from 20 million pieces per annum to 40 million pieces per annum. This is proposed to be achieved by the following means:
  A. Establishment of a new woven manufacturing facility by Pearl Global in the State Industries Promotion Corporation of Tamil Nadu Limited Industrial Park (“SIPCOT Industrial Park”), Irungattukotai, India;
  B. Establishment of a new wovens and knits manufacturing facility by Pearl Global in Narsingpur, Gurgaon, Haryana, India;
  C. Acquisition of an existing knitted garment manufacturing facility by Pearl Global in Khandsa, Gurgaon, Haryana, India; and
  D. Establishment of a new knits manufacturing facility by Norp Knit in Dhaka, Bangladesh.
2. Investment in its subsidiary company, Pearl Global, for the establishment of a design centre and corporate office at Gurgaon, Haryana, India;
3. Setting up of an integrated information technology system;
4. Pre-payment of certain term loans availed by the Company and its subsidiaries;
5. Investment in its subsidiary company, Multinational Textiles, for payment of purchase consideration to SACB Holdings Limited and Pallas Holdings Limited as part of the Group restructuring;
6. Setting up a domestic branded apparel retail business;
7. Acquisition of an existing international brand in the U.S. or the U.K. for retail outside India; and
8. General corporate purposes.