Business Daily from THE HINDU group of publications
Tuesday, Dec 11, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Tuesday, Dec 11, 2007 ePaper | Mobile/PDA Version |
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Markets
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IPOs Agri-Biz & Commodities - Oilseeds & Edible Oil Our Bureau Gandhidham (Gujarat), Dec 10 Gokul Refoils and Solvent Ltd (GRSL), an oilseed processing major, is set to expand its activities in the country and overseas and is raising up to Rs 160 crore through an initial public offer (IPO) in the next few weeks. The company, which has already filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), is also going to start its new solvent plant at Gandhidham in Kutch district of Gujarat by the end of December, its CEO, Mr R. N. Lohia, told visiting reporters here. Post-IPO, the promoters’ stake in the company would come down to 72 per cent. In November, the company successfully completed pre-IPO placement of 2,66,500 shares with Citigroup’s foreign investor, Granite Hill Capital Ventures LLC, USA, at a price of Rs 185 per share. Proceeds of the funds raised through the IPO will be used in expanding capacity and other business plans. These include pumping Rs 51.01 crore into the soyabean processing plant at Gandhidham with a capacity of 1,500 tonnes per day (tpd) which is scheduled to start production by the end of December. Other plans include expansion of the existing oil refinery at Surat from 100 tpd to 400 tpd (Rs 12 crore), funding part of long-term working capital (Rs 60 crore), investment in the wholly-owned subsidiary at Singapore (Rs 25 crore), increasing warehousing capacities and continuous capex for existing units (Rs 10 crore) and brand-building activities (Rs 15 crore). The company also plans to avail itself of a total term loan of Rs 38.25 crore from a consortium of banks, Mr Lohia said. The company’s business includes seed processing, solvent extraction and refining of various kinds of edible oils. In 2006-07, GRSL also entered the non-edible oil segment with castor oil and its derivatives through its 15-per cent partnership firm, Gokul Overseas, located in the Kandla Special Economic Zone (KASEZ). It is a 100 per cent export-oriented refinery located in the port-based town of Gandhidham. More Stories on : IPOs | Oilseeds & Edible Oil
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