Money Tree

Salient Features

Issue Opens On : February 23, 2007
Issue Closes On : February 27, 2007
Issue Size : 28,04,000 Equity Shares
Issue Type : Book Building
Face Value : Rs.10/-
Price Range : Rs. 360/- to Rs. 395/-
Tick Size : Re.1
Market Lot : 15

Minimum Order Qty : 15
Listing Stock Exchange : NSE, BSE

Main Objects of the Issue:

Brand building.
Spreading out garment manufacturing capability and introducing new garment manufacturing facility at Bommasandra, Banglore.
To upgrade the production process.
To accomplish the new generation ERP software(SAP)
To develop elastic and socks manufacturing facility.
To Acquire corporate office premises in the central business district.

Key Strengths:

It was honoured as the “best licensee of the year” in 2005 for contributing in launching and escalate Jockey brand in India.
It’s profit margins to its peer Maxwell industries are more than double.
It’s sale has increased 19.5% for last five years.
The innerwear market in India constitute 10% of the Indian apparel market.
Net profit of the company has increased 38.3% during the period 2002 to 2006.

Weeknesses :

Being dependent on external suppliers for fabric, which increases the cost of manufacture.
It is facing tough competition from many International players as well as several apparel brands.
The company would invest funds for brand building which is an intangible asset.