CHENNAI: New York Life Investment Management India Fund (FVCI-II) LLC, (NYLIM India Fund), a Mauritus-based SEBI registered foreign venture capital investor, has picked up 10.71 per cent equity stake in S. P. Apparels Ltd., a Coimbatore-based garment company.

Addressing a press conference here on Friday, P. Sundararajan, Chairman and Managing Director of S. P. Apparels Ltd., said the company had placed 18 lakh shares (10.71 per cent of its equity capital) at Rs. 200 apiece, aggregating Rs. 36 crore, with NYLIM India Fund.

With this dilution, the company's paid up capital had gone up to Rs. 16.80 crore from Rs. 15 crore, with the private equity investor valuing the company at Rs. 336 crore.

" This is a strategic dilution to infuse additional capital into the company for its expansion programme," said Mr. Sundararajan.

He said the company was in the process of adding new garment-making capacities with state-of-the-art manufacturing technology and going in for strategic backward integration projects. It was setting up a spinning unit with a capacity of 50,000 spindles, a knitting unit with 65 circular knitting machines along with a modern dyeing unit and a renewable energy project (windmill) with a capacity of 10 MW.

The company was planning to take up these projects in a phased manner and would invest Rs. 235 crore, he said.

S. P. Apparels had drawn up plans for its foray into the domestic retail market after it acquired 60.14 per cent stake in Crocodile Products from Shivrams Associates..

To push the Crocodile brand, it planned to set up over 30 exclusive retail outlets nationally and another 43 stores on franchisee arrangements for Crocodile products.

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