Genesis Colors Gets Sebi Nod For IPO
New Delhi: Genesis Colors, which owns luxury brands like Satya Paul and Bwitch, has received approval of the Securities and Exchange Board of India (Sebi) to raise an estimated Rs 650 crore through an initial public offering or IPO.
The company had filed its draft red herring prospectus (DRHP) with the capital markets regulator in September. The regulator on February 3 issued its final observations on the draft offer documents, which is necessary for any company to launch a public offer.
The IPO comprises a fresh issue of shares worth Rs 380 crore and offer for sale up to 1,916,741 equity scrips by existing shareholders, as per the draft prospectus filed with Sebi.
According to sources, the public issue is expected to garner about Rs 650 crore.
Founded in 1998, Genesis Colors is the holding company of fashion brands Satya Paul and Bwitch. Besides, it holds the marketing and distribution rights in India for several international luxury labels under its arm Genesis Luxury Fashion, according to the company's website.
Genesis Luxury Fashion distributes premium international brands like Jimmy Choo, Armani, Paul Smith and Bottega Veneta.
The Genesis Group also has joint ventures with British fashion brand Burberry, Italian menswear Canali and Villeroy & Boch of Germany for tableware.
The funds raised through the issue would be utilised for purchase of shares of the company's subsidiary Genesis Luxury Fashion from Splendor Distributions and promoter Sanjay Kapoor and for other general corporate purpose.
The IPO is being managed by ICICI Securities, Edelweiss Financial Services and Ambit.
