Mudra Lifestyle, a well-known firm in the fashion market has announced that board of directors of the company has given the approval for setting up of yarn project costing Rs. 300 crore preferably in the state of Uttarakhand or Himachal Pradesh.

An official release from the company stated, “The project is proposed to be funded by contribution from Promoters by way of Warrants amounting to Rs. 36 crore, issuance of foreign currency convertible bond or overseas equity up to Rs. 200 crore and the balance by way bank loans.”

The company board has also approved the issue of warrant of Rs 10 per equity on preferential basis to the promoters at an effective price of Rs 120 per warrant. This price was decided according to existing rules, according to which the set price will be higher of average price for 26 weeks and 2 weeks prior to the date of announcement, which was December 19, 2007.

The firm presently holds market cap worth Rs. 373 crore, PE Ratio of 14.37; EPS of 7.21 and BV of 40.76. The firm had showed a net profit of Rs 8 crore for the quarter ended September 2007.
At 11:47 AM, the share was trading at Rs 103 on NSE, down by 3 % compared with previous close of Rs.106. The stock has touched its lifetime high of Rs. 109 during intraday trading but, probably can’t sustain it.