Given the stiff competition, lack of prior experience of business

Given the stiff competition, lack of prior experience and commoditynature of business, First Winner Industries' offer is betteravoided. First Winner Industries (FWI), a Mumbai-based company, is currentlyengaged in the business of trading of textile fabrics andmanufacturing of Grey Fabrics which are supplied to variouswholesalers and apparel manufacturers. In 2003, it started tradingin textile fabrics, but with a view to have its own manufacturingfacilities, the company set up a weaving unit during 2006-07 byinstalling 100 looms (in Thane, Maharashtra) with a total installedcapacity of 108 lakh meter grey fabrics per annum (pa).The company also undertakes manufacturing of grey fabric on a jobwork basis. Ramshyam Textile Industries and First Winner Lifestyle(formerly Realgold Exports), engaged in the same business (96 loomswith total capacity of 104 lakh meter pa), became FWI'ssubsidiaries on April 1, 2007.The company now plans to raise Rs 66  Rs 71.50 crore by offering55 lakh equity shares in the price band of Rs 120-130 to fund itsexpansion and forward integration plans, as well as repay debtworth Rs 18 crore.FWI is setting up an apparel manufacturing facility with aproduction capacity of 5,000 pieces of men's wear shirts per day(estimated cost Rs 12.04 crore) and a new weaving unit to increaseits total capacity from 108 meter pa to 170 lakh meter pa(estimated cost Rs 21.63 crore). Post-issue, the promoters holdingwill reduce to 42.28 percent from about 70 percent currently.