If you are waiting for earnings from IPO, then another opportunity is going to come to you in the coming days. Actually, textile company Raghuveer Exim Limited is preparing to raise funds through initial public offering (IPO). The company has filed preliminary documents for the IPO with market regulator SEBI. The draft documents state that the funds raised from the IPO will be used to finance expansion plans.
More than 30 companies filed documents this year
According to the news, so far this year more than 30 companies have filed IPO documents with the Securities and Exchange Board of India (SEBI). According to the documents, 1.4 crore new shares will be issued in the company’s IPO. According to the draft red herring prospectus (DRHP) filed on March 31, promoter Sunil Agarwal will make an offer for sale (OFS) of 45 lakh equity shares. At present the promoters’ stake in the company is 100 percent.
Plan to set up two sewing units
According to reports, Raghuveer Exim Ltd plans to use about Rs 112.87 crore from the net proceeds of the fresh issue to set up two tailoring units in Ahmedabad, Gujarat, and the rest will be allocated for general corporate purposes. Raghuveer Exim mainly processes semi-finished garments into finished garments. 97% of its revenue is generated from exports. In the last three financial years, it has exported products to more than 25 countries, including the United States, Canada, the United Kingdom, Israel and Australia.
Raghuveer Exim Ltd reported a net profit of Rs 19.24 crore in FY23, a compound annual growth rate (CAGR) of 29.21% during FY 2021-23. In the same period, revenue from operations grew at a CAGR of 5.81% to Rs 247.56 crore.
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