Milestone Furniture Ltd aims to set up manufacturing facility through IPO; to raise Rs14.84 crore

0
437

Bilkulonline.com, Ahmedabad, May 4: 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, 03rd 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 promoter of Milestone Furniture milited speaking at the conference

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.