Milestone Furniture Ltd soon to launch IPO and launch partnership initiatives
Milestone Furniture Ltd aims to set up manufacturing facility through IPO; to raise Rs14.84 crore
Issue opens on 07 May 2018 and will close on 11 May 2018, to get listed on BSE SME platform
32.97 lakh shares to be issued at a fixed price of Rs 45 each with a minimum lot size of 3,000 shares
Ahmedabad, 3rd May, 2018: Milestone Furniture Ltd (MFL), a company which designs, manufactures and markets interior and modular furniture, is coming out with its maiden IPO of 32,97,000 equity shares with a face value of Rs 10 each at a fixed price of Rs 45 per share, with a view to mobilize a sum of Rs 14.84 crore. The company aims at financing working capital requirements to set up a manufacturing facility and to address the needs for general corporate fund.
The issue is set to open for subscription on 07 May 2018 and will be closing on 11 May 2018. The IPO will get listed on BSE SME platform and the minimum application will be made for a lot size of 3,000 retail shares. For High Networth Individuals, the bid lot will be of 6,000 shares and in the multiples of 3000 shares thereon. The issue comprises 35.46% of the post-issue paid-up capital of the company.
MFL plans to set up its manufacturing facility in MIDC Murbad, Thane Maharashtra for manufacturing wide range of modular furniture. “We have differentiated ourselves from our competitors through introduction of new products, and designs that address consumer requirements through great value addition. Taking this forward, we plan to set up a manufacturing facility for wide range of modular
furniture in MIDC Murbad, Thane Maharashtra. The IPO will help us in fulfilling our commitment to meet the needs of our clients through innovative, utilitarian and chic furniture design solutions. We are looking at an initial investment of Rs.9.06 cr for our upcoming plant and rest of the IPO proceeds will be used for Working Capital and general Corporate purpose,” said Mr PS Ganeshkumar, who is one of the
promoters of the company.
Mr Digambar Sudam Songhare, who is also a promoter of the company, said, “We have come a long way by designing and supplying interiors and modular furniture in education, healthcare and corporate organisations through our diverse projects. The launch of our maiden IPO will help us in corporate funding requirements, to leverage our marketing and designing skills to greatly improve satisfaction of our customers.”
It is noteworthy that the company already has a fully equipped factory and warehouse in Mumbai spread across 8,000 square feet area. The company has been engaged in accomplishing projects for several prestigious clients such as ONGC (Bandra) and Jet Airways, (Bandra-Kurla Complex) through contractors; in addition to direct clients including Indian Institute of Technology (Bombay), GSN Associates, Rameshwar Enterprise Group of Companies, Sonali Marketing Group of Companies and Poddar International School, among others.
Currently, the two promoters hold 64.54% equity shares of the post issued paid-up equity share capital of the company. The promoter and the promoter group would continue to hold the majority of the post-issue paid-up Equity Share Capital of the Company.
An Ahmedabad Based Merchant Banker Monarch Networth Capital Ltd is a lead manager of this public issue and Karvy Computershare Private Limited Ltd is a registrar.