The Hindu Business Line : L T Overseas announces Rs 35-cr IPO

NEW LAUNCH: Mr V.K. Arora (right), CMD, L.T. Overseas Ltd, with Mr K. Srinivas, President, UTI Securities, at a press conference in Mumbai on Tuesday. - Paul Noronha

Mumbai , Nov. 21

L T Overseas Ltd, manufacturers of basmati rice, has announced its initial public offering of 70.36 lakh shares of Rs 10 each at a price band between Rs 50 and Rs 56 per equity share. The actual premium will be decided through the book building process. The company will raise a minimum amount of Rs 35 crore through this issue.

Out of the total shares offered, 3.9 lakh equity shares are reserved for permanent employees and 66.46 lakh equity shares for `net issue to public'. The net issue to public would constitute 29.84 per cent of the fully diluted post-issue paid-up capital of the company, said a statement from L T Overseas.

Expansion

Post-issue, the promoter and promoter group holding will own 64 per cent equity stake in the company. Fifty per cent of the net public offer will be allotted to qualified institutional investors, 15 per cent to non-institutional investors, and 35 per cent to retail investors.

In a pre-IPO placement, 7.14 lakh equity shares have been placed with Bennett Coleman & Co Ltd and another 50,000 equity shares with Deramann Ltd at a price of Rs 70 per share, said the statement.

The proceeds of the issue would go towards expansion, automation and modernisation of the company's Sonepat plant in Haryana including setting up of new parboiled rice processing and milling capacity, storage facility and generating power for captive purposes, said Mr Vijay Arora, Chairman and Managing Director, L T Overseas.

The company is in the business of milling, processing and marketing of branded and non-branded basmati rice and rice products. The `Daawat' brand is one of the company's products.