Mumbai, Feb. 7: Gokaldas Exports Ltd is planning an initial public offering (IPO) to part-finance its modernisation and expansion plans. While reports say that the Bangalore-based apparel manufacturer exporter is looking at an IPO size of around Rs 150 crore, Gokaldas is planning to offer 31,25,000 shares at a price to be determined through a 100 per cent book-building route.

The issue proceeds will be used to set up manufacturing facilities and modernise its existing factories.

The IPO plans of Gokaldas come at a time when textile stocks have picked up momentum on the bourses. The dismantling of the quota regime is working in favour of the domestic industry. It is felt that investor interest in the textile sector is set to take a further leap after the scenario of the post-quota regime is clear by the second half of this calendar year.

At least 60 per cent of the equity (18,75,000 shares) will be issued to qualified institutional buyers (QIBs). On the other hand, up to 15 per cent of the issue will be available for allocation on a proportionate basis to wholesale bidders and not less than 25 per cent of the issue, numbering 7.81 lakh shares, will be available for retail bidders.

Gokaldas has filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi) on February 4.

The issue will constitute 18.18 per cent of the fully diluted post-issue paid-up capital of the company. The book running lead manager to the issue is Enam Financial Consultants Pvt Ltd and co-book running lead manager is IL&FS Investsmart Ltd.

Gokaldas has 43 factories with 258 production lines and employs over 30,000 employees. The facilities are fully integrated with in-house manufacturing of labels, tags, elastics, cords, and woven tapes. The company also has in-house facilities for value-added services like poly-fill quilting, embroidery, printing and laundry.

The company, which began its operations in 1970, caters to the needs of more than 100 fashion houses at present. Its buyers include apparel brands like Nike, GAP, Old Navy, Banana Republic, Tommy Hilfiger, Abercrombie & Fitch, Hollister, Reebok, and Adidas and retailers like Wal-Mart, Sears and The Metro Group.

The company recorded revenues of Rs 382.8 crore with a net profit of Rs 24.7 crore for the six-month period ended September 30.

India?s textile exports accounted for 20 per cent of its exports at $13 billion in 2003-04. Apparel exports accounted for $6 billion.