The Hindu Business Line : Kovilpatti Lakshmi announces follow-on public offer

FOLLOW-ON OFFER: Mr Suresh Jagannathan, MD, Kovilpatti Lakshmi Roller Flour Mills Ltd, at a press conference to announce the company's public issue in Mumbai on Tuesday. - Paul Noronha

Mumbai , Nov. 21

Kovilpatti Lakshmi Roller Flour Mills Ltd, engaged in wheat flour milling, cotton yarn production, and sheet metal fabrication, has announced its follow-on public offer of 26 lakh equity shares of Rs 10 each at a price of Rs 55 per share aggregating Rs 14.30 crore. The issue opens on November 27 and closes on December 1.

The company plans to use the proceeds of the issue to part finance its Rs 30.60-crore expansion plan. The plan includes investment into the recently acquired Eltex Super Castings Ltd and setting up of two additional windmills of 1.25-MW each for captive consumption. The balance of Rs 16.30 crore is being funded through term loans and internal accruals.

Of the total offer of 26 lakh equity shares, 2.60 equity shares are reserved for employees, 5.20 lakh equity shares will be given to NRIs and FIIs, 5.20 lakh for banks, mutual funds and financial institutions, 2.60 lakh equity shares for existing shareholders and the net issue offered to the public will be 10.40 lakh equity shares. The company will further dilute 28 per cent of its equity for the follow on offer.

Currently, 24,01,046 equity shares are listed on the Bombay Stock Exchange, Madras Stock Exchange and Coimbatore Stock Exchange and the additional 26 lakh equity shraes will also be listed on these exchanges.

Keynote Corporate Services Ltd. is the lead manger to the issue. The company currently has three divisions, flour mill, spinning and engineering. The company proposes to expand the scope of its sheet metal operations through Eltex Super Casting Ltd and restarting Eltex's foundry units.

Kovilpatti Lakshmi has reported a turnover of Rs 55.70 crore and profit after tax of Rs 1.89 crore for the half-year ended September 30, 2006.

The company's stock closed at Rs 71.50 on the BSE, up 0.14 per cent on Tuesday.

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