Financial Daily from THE HINDU group of publications
Friday, Nov 04, 2005
Financial Daily from THE HINDU group of publications Friday, Nov 04, 2005 |
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Corporate
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Outlook Grover Vineyards hopes to raise Rs 15 cr via stake sale K. Giriprakash
Bangalore , Nov. 3 INDIA'S largest wine exporter, Grover Vineyards, expects to raise Rs 15 crore from a 35 per cent stake sale and has mandated Ambit to shortlist potential investors to sell the stake. "We are in talks with a couple of investors currently to sell 35 per cent stake," Grover Vineyards' Vice-President, Mr Abhay Kewadkar, told Business Line. He said the decision to sell part of the stake was taken because one of the investors, who holds a 25 per cent stake, wanted to exit the company. Mr Kewadkar said Grover would prefer a venture capital firm to pick up the 35 per cent stake. Change in equity structure: Grover has also decided to change its equity structure. The equity base will be expanded to Rs 4.6 crore from Rs 3.2 crore. The holding company, Hindustan Export & Import Corporation Pvt Ltd's stake will be reduced to 47 per cent from 51 per cent. The 17 per cent stake held by Champagne Veuve Clicquot will also decrease to 14 per cent. But the individual shareholder, Mr Michel Roland's stake of 4 per cent will remain the same. The funds raised from selling the stake will go towards expanding the capacity of the company. Ambit has valued each Rs 10 share of Grover at Rs 125. Grover has around 200 acres of vineyard near Bangalore. It recently added 75 acres for plantation and another 100 acres will be added by January 2006 to achieve its production target of around 1.5 million bottles (750 ml each) in another four years. It expects to export 40 per cent of its production by that time. Currently, it exports 30 per cent of its production. In 2004-05, Grover sold 6.2 lakh of bottles and expects to sell eight lakh bottles this fiscal. During 2004-05, on net sales of Rs 12 crore, its PBIDT (profit before interest, depreciation and taxes) was around Rs 3 crore and during 2003-04, on net sales of Rs 9.6 crore, its PBIDT was Rs 2.4 crore. Largest exporter: Grover is the largest exporter of wine in the country and is the third largest wine producer in the domestic market after Indage and Sula Wines. According to an international wine industry magazine, Decanter, Grover's red wine has been ranked the best wine in the new world, which comprises emerging wine markets.
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