VIP Clothing to raise 50 cr via rights issue

Hyderabad: VIP Clothing Ltd, a premium men’s innerwear company, will mobilise Rs 50 crore through rights issue to fund its business expansion. The company has already received in-principle approvals from BSE and NSE and awaiting Sebi nod.

“We have chartered a major growth plan and will raise funds to support our expansion project. We’ll raise Rs50 crore from the rights issue. Most of the proceeds will be used for business expansion through advertising spends and working capital,” Yogesh Tiwari, CEO, VIP Clothing Ltd, told the media here on Thursday.

The company has launched VIP Regal and Frenchie casuals designed to cater to the sensibilities of modern Indian men. After launching the new product range, Tiwari said: “We recorded a turnover of Rs230crore in FY17 including 10 percent volume coming from exports.

Telangana and AP account for seven percent of our topline, while Kerala contributes nine percent.” VIP Regal and Frenchies collections cater to two unique consumer segments. VIP regal is a contemporary classic brand, crafted for the sophisticated taste, whereas Frenchie Casuals targets the fashion oriented youth.

The collections are designed keeping ‘FIT’ as the most important factor, while retaining its aesthetic appeal “Both our collections are refreshing in terms of design and accustomed to the modernized feel. We have infused different flavors to cater to varied sensibilities of modern man who is not just fashion conscious but also comfort savvy,” said Kapil Pathare, Director, VIP Clothing.