The Hindu Business Line : Southern Online files prospectus for rights, public issue

SOUTHERN Online Bio Technologies Ltd has announced that it has filed its draft prospectus with the Securities and Exchange Board of India (SEBI) on Monday for the proposed rights cum public issue.

In a press release here, the company said it is diversifying the business with plans of setting up bio diesel production unit at Choutuppal near here at an estimated cost of Rs 17.1 crore. The size of the issue would be 1.71-crore equity shares of Rs 10 each at par.

While UTI Securities is acting as the lead managers to the proposed rights cum public issue, the company plans to get the shares listed on the Bombay Stock Exchange.

According to the company, promoters are proposing to contribute Rs 2.85 crore and the balance Rs 14.25 crore would be raised from friends and relatives of the promoters and the public through rights cum public issue. The proposed bio diesel production unit would commence commercial operations by the end of November next year.

For the quarter ended September this year, the company achieved a net profit of Rs 5.1 lakh on a total income of Rs 1.02 crore. This revenue was achieved primarily through ISP operations, the company said.