CNBC-TV18 has learnt that Liberty Shoe may be looking to dilute about 10% equity. It may also be looking at a pre-IPO placement for its retail subsidiary.
According to sources, the company is planning to make a 15-20% pre-IPO placement in their 100% subsidiary, Liberty Retail Revolution, which may fetch around Rs 30-40 crore.
Sources say that Liberty Shoes may dilute around 10% equity for Rs 30-35 crore. According to the Sebi formula, the floor price comes to Rs 142 but the promoters are looking to issue shares at Rs 170-175 per share. Promoters hold 62% stake in Liberty Shoes
The company has initiated the process to raise money via QIP/FCCB. In totality, the company will be raising anywhere around Rs 70-75 crore to fund their capex plan. The funds raised will be utilised for manufacturing facilities, which they have started in tax-exempted areas like Uttarchal and Himachal Pradesh, and also for working capital.
Source : CNBC