Mumbai, July 5, 2007: SEL Manufacturing Company Limited (SEL), a vertically integrated textile company based in Ludhiana, is coming out with a book built initial public offering (IPO) of up to 46,38,410 Equity Shares. SEL has already received SEBI observations on the DRHP for the IPO and subject to receipt of other necessary regulatory clearances, SEL IPO is expected to hit the market some time during 3rd week of July 2007.UTI Bank is the mandated book running lead manager for the IPO.

EXIM Bank is subscribing to 7,60,800 Equity Shares of Rs. 10 each of SEL at Rs. 65 per Equity Share, including a premium of Rs. 55 per Equity Share. This equity stake will be 5% of the fully diluted paid capital of SEL after the IPO. Besides this pre-IPO equity participation, EXIM Bank has also sanctioned a term loan of Rs. 250 million for the expansion project. It may be recalled that in July 2005, EXIM Bank had also acquired a pre-IPO equity stake in Bombay Rayon Fashions Limited, a Mumbai based integrated textile company.

Promoted by Mr. Ram Saran Saluja and his sons Mr. Neeraj and Mr. Dhiraj Saluja, SEL Manufacturing Company in the initial years was predominantly into manufacture of knitted ready-made garments. The Company started integrating its operations in early 2005. During the same time the Saluja Group also started consolidating all its affairs under SEL Manufacturing. Over last few years, SEL has de-risked it's business model from being a garment manufacturer to being a fully integrated textile company, from being a one product company to being a multi product company and from being dependent only on exports to a company having diversified domestic and overseas market. The manufacturing facilities of the Company are based in Ludhiana in Punjab and Baddi in Himachal Pradesh. SEL is exporting 100% of the garments that it produces.

SEL is planning to expand its capacities in spinning, knitting and garment manufacturing at a total cost of Rs.1845.7 million. The debt component of Rs.1037.9 million is fully tied up under TUFS.

The total income of SEL has increased from Rs. 643.44 million in FY 2005 to Rs. 2018.81 million in FY 2007 at a CAGR of 77.13%. The consolidated total income of SEL has increased at a rate of 40.99% from Rs. 1463.26 million in FY 2006 to Rs. 2063.11 million in FY 2007. Profitability of SEL has increased from Rs. 31.45 million in FY 2005 to Rs. 236.96 million in FY 2007 at a CAGR of 174.47%. Consolidated restated profits after tax had shown growth of 67.71% from Rs. 136.06 million in FY 2006 to Rs. 228.18 million in FY 2007.

SEL is proposing to make a public issue of it's equity shares and is in the process of filing the Red Herring
Prospectus with the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh located at
Jalandhar. The Offer Document is available on the respective websites of SEBI and the BRLM at
www.sebi.gov.in and www.utibank.com