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Our Bureau

Kolkata , Aug. 24

Sugar major Balrampur Chini Mills Ltd has made an open offer for the minority shareholders of New Delhi-based Indo Gulf Industries Ltd.

As per the announcement sent to the stock exchanges, Balrampur Chini would be buying 37.15 lakh shares, representing 38.33 per cent of the total equity share capital, for a price of Rs 7 per share whose face value is Rs 10. The offer would be open for 20 days from October 16, this year.

Earlier this month, the Saraogis of Balrampur Chini acquired a controlling stake of 27.54 per cent stake in Indo Gulf Industries belonging to the SK Garg Group. The Saraogis bought 26.34 lakh shares, which represented 27.54 per cent stake.

Balrampur Chini paid Rs 1.61 crore to Mr S.K. Garg. The company had also taken over Indo Gulf Industries' total liability of Rs 50 crore. For the proposed open offer, the Saraogis would be coughing up another Rs 2.6 crore, approximately.

Indo Gulf Industries has a 3,000 tonnes crushed per day sugar plant at Meizapur in Uttar Pradesh. The plant, located near the existing units of Balrampur Chini, was set up in 1994, and has remained closed since 2003.

With the acquisition of this unit, Balrampur Chini's total sugar crushing capacity would increase to around 75,000 tonnes crushed per day. At present, it is 49,000 tonnes crushed per day.

More Stories on : Sugar | Open Offers

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