Gini and Jony IPO coming soon

Gini & Jony, India`s leading manufacturers of premium lifestyle kids wear based in Mumbai filed the draft red herring prospectus (DRHP) with market regulator, Securities and Exchange Board of India (SEBI) to enter into the capital market with an initial public offering (IPO) of 3 million equity shares, of Rs 10 each for cash at a price to be decided through a 100% book-building process. The company will fix the issue price and date in later stage.

The issue will constitute 25.04% of the fully diluted post issue paid-up equity capital of the company. The equity shares are proposed to be listed on the Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE). The book running lead manager to the issue is Edelweiss Capital.

Of the total equity float, at least 50% of the issue shall be allocated on a proportionate basis to qualified institutional bidders (QIBs) including 5% of the QIB portion that would be especially reserved for mutual funds. Further, not less than 15% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the issue shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price.

Gini & Jony, promoted by Prakash Lakhani in 1994, is engaged in activities primarily includes designing, manufacturing, branding and selling of ready-made apparels and other lifestyle accessories for kids, under its various brands. Its distribution channel broadly comprises of network of exclusive brand outlets (EBO), mix of distributors, shop-in-shops (SIS) and factory seconds outlet (FSO). Its wholly owned subsidiary, GJFFL distributes the products through its network of exclusive brand outlets. As on Mar. 31, 2008, its pan-India distribution network is spread over 108 cities comprising 60 EBO, 28 distributors, 124 SIS and 38 FSO. Its 28 distributors sell the products to 706 MBO, across India.