Opal Luxury Time Products IPO to open on March 25

Opal Luxury Time Products, a Pune-based premium home products manufacturing and marketing company, proposes to enter the capital markets with a public issue of Rs 13 crore through a book building process.

The price band is fixed at Rs 130-135 per equity share.

The net proceeds of the issue are proposed to be utilised for investments in moulds, tools and equipment, and indigenisation of the designs for expansion of the existing manufacturing facility at Roorkee (Uttarakhand).

Further, a part of the net proceeds is also proposed to be used for enhancement of the company’s brand through advertising and other brand building activities.

Company intends to deploy Rs 10.3 crore for indigenisation of the designs and overall expansion of the existing facility over FY2014 and FY2015. Currently, the company manufactures as well as outsources its clock components, while the final assembly is completed at the manufacturing facility at Roorkee.

The company proposes to utilise Rs 3.91 crore from the net proceeds towards enhancement of company’s brand through advertising and other brand-building activities.

Currently, the company designs and manufactures wall and table clocks and market them under two brands: its flagship premium brand Opal and budget brand Caliber.

The rating agency CRISIL assigned grade 4 (indicating superior fundamentals) to this issue.

Equity shares are proposed to be listed on EMERGE, the SME platform of NSE.

IDBI Capital Market Services Limited is the sole book running lead manager for the issue.