In style

Mumbai, April 7: Provogue (India) Ltd, which houses the leading fashion brand, has filed a draft red herring prospectus with the market regulator for its maiden offer.

Provogue is planning to issue 40.49 lakh shares at a price to be determined through the book-building route. The issue would constitute 25 per cent of the fully diluted post issue equity capital of the company.

The company has reserved 50 per cent of the net offer for qualified institutional bidders to be allotted on a discretionary basis, 15 per cent for non-institutional investors and the balance 35 per cent for retail investors on a proportionate basis.

The proceeds from the issue is proposed to be utilised for expanding the Provogue chain of branded stores in the country and raising the capacity at its garment making facilities and product design and development centre. It will also be used to meet working capital requirements.

The book-running lead managers to the issue are SBI Capital Markets Ltd, Karvy Investors Services Ltd and Anand Rathi Securities Pvt Ltd.

Provogue, whose brand ambassador is the popular actor, Fardeen Khan, has been built around the brand statement ? Redefining fashion?. The brand is retailed through selective stores in the country and leading chain stores apart from exclusive outlets called Provogue Studio situated at over 50 locations.

The company is planning to add more than 20 Provogue Studios. It is also interested in setting up a facility for making trousers.

It was reported earlier that the company was planning to raise around Rs 75 crore through the IPO.

Provogue was formed by merging Acme Global, Acme Clothing and Acme Hospitality early this year. While its revenue is more than Rs 105 crore, net profit stands at around Rs 8 crore.

Bombay Stock Exchange broker Rakesh Jhunjunwala had picked up a 5 per cent stake in the company and later joined the its board.