CHENNAI: Celebrity Fashions, a leading exporter of men's shirts and the owner of Indian Terrain brand, is entering the capital market with an initial public offer of 45.50 lakh equity shares of Rs. 10 each through the book-building process. The issue will remain open from December 19 to 22. The price band has been fixed at Rs. 160-180 per share.

Addressing presspersons in connection with the public issue, V. Rajgopal, Managing Director, said the issue proceeds would be used for funding acquisition of a trouser facility, setting up exclusive Indian Terrain stores and for establishing a new factory for manufacturing tops.

The company has already entered into a memorandum of understanding with Ambattur Clothing Limited for the acquisition of its undertaking engaged in the manufacture of all types of trousers with a total capacity of 60 lakh trousers annually.

According to Mr. Rajgopal, there are lot of opportunities for growth in the global textile industry in a quota free regime and in the branded apparel domestic market. He said Celebrity Fashions was established in 1988 as a small 50 machine factory with 72 employees in Chennai. It had grown to eight factories with 4,283 machines and 5,000 employees. The intention was to expand, strengthen and consolidate its current position in the domestic and global markets.

Celebrity Fashions has acquired the status of two star export house and several international brands source their requirements from the company. Leading international customers included Kohl's Corporation, Timberland and Eddiebauer of the U.S. and Marlboro Classics and Diesel of Europe, Mr. Rajgopal said.

The company has reported a turnover of Rs. 134 crore in 2004-05 and in the half- year ended September 30, 2005 the turnover was Rs. 87 crore.

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