The Hindu Business Line : Gulshan to raise Rs 26.4 cr from follow-on issue

Gulshan Sugars & Chemicals Ltd (GSCL) has announced that it will raise Rs 26.4 crore through a follow-on public issue of 66,00,000 equity shares. The issue opens for subscription on November 22 and closes on November 28.

The issue, which will be at Rs 40 per share of Rs 8, will constitute 51.51 per cent of the fully diluted post-issue paid-up capital. The promoters currently hold 72.97 per cent stake in the company, which is a large producer of calcium carbonate.

GSCL is raising the equity capital to part-finance its expansion plans to increase its ground calcium carbonate capacity to 90,000 tonnes per day (tpd) from 70,000 tpd currently.

The expansion plans include a three MW captive power plant. Fuel and energy costs constitute 30 per cent of the selling price of the product, said a company official.

IDBI has cleared a term loan of Rs 8 crore as part-finance requirement for the capacity expansion.

Calcium carbonate is used by the PVC, plastic, rubber, toothpaste, leather and pharma industries.

The company supplies its products to corporates such as HLL, Colgate Palmolive, Asian Paints, Goodlass Nerolac and Berger Paints, said the official.

GSCL also caters to the paper industry and supplies to the ITC Group and Century Paper. The company had come out with an IPO in 1991 when its capacity was 22,500 tonnes per annum.