Issue Date of Jindal Cotex IPO
The offer is open between August 27th and September 1, 2009.
Price Band of the IPO
The price band of Jindal Cotex has been fixed between Rs. 70 and Rs.77.
Brickwork Ratings India Private Limited has rated the IPO – 3 out of 5, which indicates average fundamentals.
Business of Jindal Cotex
Jindal Cotex manufactures Acrylic, Polyester, Polyester â€“ Viscose, Polyester Cotton, combed and carded yarn, which are used to manufacture suitings and fabrics. They have an installed capacity of 23,472 spindles of acrylic, cotton blended and polyester yarns.
In addition to the existing business, the IPO is meant to raise money for expansion and entry into new lines of business. These new lines of businesses are medical and specialty textiles, and will be carried out through fully owned subsidiaries.
Jindal Cotex has also installed a 1250 KW Suzlon Wind Mill, and plans to sell all the power generated from this wind mill to Ajmer Vidyut Vitran Nigam (AVVN). AVVN is a power distributor that supplies power to 11 districts in Rajasthan. So, Jindal Cotex seems to be testing waters in the power generation business as well.