Ludhiana-based Jindal Cotex plans to raise upto 94 crore through its upcoming initial public offer (IPO).

The company will offer 1.24 crore equity shares of face value of Rs 10 each. The price band has been fixed at Rs 70-75 per share.

At the upper price band the company expects to collect Rs 93.40 crore while at the lower price band it hopes to raise Rs 87.17 crore. The IPO will open on August 27 and close on September 1, 2009.

Jindal Cotex is engaged in manufacturing acrylic and polyester yarns, including polyester viscose, polyester cotton, and combed and carded yarns.

The raised amount will be utilized by the company mainly for entering into technical textile space through investment in wholly-owned subsidiaries - Jindal Medicot Ltd (JML) and Jindal Specialty Textiles Ltd (JSML).

JML stated in a communiqué that it will set up a Rs 88-crore facility to manufacture healthcare products, cotton grey bandage, dental rolls, zig zags, cotton balls, ear buds.

In addition, the company will also setup Rs 151-crore facility to manufacture PVC laminated products with an estimated annual capacity of 60-million sq meters.

Both facilities are scheduled to be set up in Una district of Himachal Pradesh, which are expected to be completed by 2010.