The initial public offering of Delhi-based NCML Industries will open on December 29. The price band has been fixed at ₹100-120 a share. Sixty lakh equity shares of face value ₹10 each will be offloaded by the selling shareholders — Mohit Nidhi Agro Oil, Sundaram Distributors and Jagprem Vyapaar.

The company will not receive any proceeds from the offer, and all proceeds will go to the selling shareholders.

The offer will constitute 25.48 per cent of the post-offer paid-up equity share capital of the company, and the shares are proposed to be listed on the BSE and NSE.

ICRA gives Grading 3

The offer, which will be done through the book building process, will close on January 2. ICRA has graded the issue and assigned it ‘IPO grading 3’, indicating average fundamental. The company is in the business of importing, manufacturing and marketing of edible oils in India. It has an international presence, too. For the year ended March, the total revenue of NCML Industries stood at ₹2,767 crore and net profit of to ₹55.22 crore. The total revenue for the first quarter of the current fiscal ending June 30 was ₹881.69 crore and PAT was ₹6.64 crore, the company said in a statement.

Eyes newer markets

The company now plans to foray into newer markets and increase its customer base. It is planning to set up manufacturing facilities in strategic locations to increase its presence in new markets.

NCML had set up its own refinery unit in FY2011-12 with an installed capacity of 350 tpd at Khasra in Pilakhua district of Uttar Pradesh.

As on June 30, the company had two distributors in Himachal Pradesh, 30 distributors in Punjab region, 30 distributors in Haryana and two distributors in Jammu & Kashmir.

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