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Confidence Petroleum raises ₹78 crore

Our Bureau Ahmedabad | Updated on August 13, 2018 Published on August 13, 2018

Confidence Petroleum India Ltd, India’s largest LPG cylinder manufacturer and a leading private sector LPG retailer, on Monday said it has raised ₹78 crore through private placement.

The Nagpur-based, listed company allotted 1.5 crore equity shares on a preferential basis, at the rate of ₹52 per share to Jasol Investment and Trading Company Ltd, an Americorp Group Company and Global Strong Growth Fund. Subsequently, the paid-up equity share capital of the company has increased to ₹27.38 crore (27.38 crore shares of ₹1 face value). The new investors will hold 5.48 per cent in enhanced equity capital of the company. Prabhudas Lilladher acted as the sole advisors to the issue, according to a company statement here. The company’s board of directors has also approved a fund raise of ₹104 crore through issue of two crore equity share warrants under preferential allotment at the rate of ₹52 each to promoters and others, subject to stock exchange approvals.

Nitin Khara, Chairman and Managing Director, said the funds raised will help Confidence Petroleum fulfil its plan of setting up 200 auto LPG Dispensing Stations (Auto LPG LDS) by the end of FY19 and 500 auto LPG ALDS by FY2022. “We also intend to increase our bottling plants from current 58-100 within the next three years.”

The company markets LPG under the brand name “GoGas” and currently has 140 auto LPG Dispensing Stations spread over Tamil Nadu, Karnataka, Telangana and Maharashtra. It has recently introduced light-weight and blast-proof composite LPG cylinders under the brand name “GoGas Elite” for the domestic and commercial LPG use.

Confidence Petroleum has a capacity to manufacture 50 lakh units per annum. It has 15 cylinder manufacturing units and 58 bottling plants across India.

Published on August 13, 2018
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