Vishwanath Sugar files for Rs 374 crore IPO


love dale belagavi

Vishwanath Sugar Industries Ltd, a Belgaum-based company primarily into the production of sugar, alcoholic spirits by distillation including ethanol, and blending and bottling of Indian Made Foreign Liquor (IMFL), has now decided to enter the capital markets to fund its expansion plan.
The company has filed DRHP (draft red herring prospectus) with SEBI for this purpose. The proposed IPO aims to raise Rs 374 crore through the book-building route. Ashika Capital Ltd is the sole book running lead manager for this IPO.

The company is promoted by the Katti’s, Umesh Katti (District in charge minister for Belgaum) and Ramesh Katti his younger brother who is a member of Parliament.

The company has an integrated sugar production facility located at Bellad Bagewadi, Belgaum district, in north-west Karnataka, which has been classified as a high recovery zone for sugar production by the Government of India.

Plans are underway to expand its integrated production facility situated in Belgaum district from the proceeds of the proposed public issue. The expansion plan involves increasing the sugarcane crushing capacity from 5500 TCD to 11000 TCD. The company further proposes to install a new boiler of 150TPH capacity of 110 kg/cm2 pressure and a suitable turbine to its co-generation unit to enable it to have a total installed power generation capacity of 66.40 MW.

From the proceeds of the issue, the company also proposes to deploy a part of the funds as capital expenditure to expand the capacity of its distillery from the present 35 KLPD to 100 KLPD leading to an increase in its IMFL production capacity from 2,500 boxes per day to 5,000 boxes per day.

For the year ended March 31, 2011, the company had a total income of Rs 47,496 lakh and net profit after tax of Rs 4,300 lakh as compared to total income of Rs 41,528 lakh and net profit after tax of Rs 1,795 lakh for the year ended March 31, 2010.

Read more about the Kattis…

Trinity Belagavi
SHARE

2 COMMENTS

  1. Can we have any updates which are made in last railway budget 2011.
    Is there any improvements in those area…
    Here all the ministers are making money but establishing their own firms….not looking into common man’s needs and requirements…….

    • what else can we expect from ministers, good they will have another source of income, i cant believe there is net profit of 1795 thousand lacs, this are manipulated results to raise money from public through IPOs, what railway budget some are asking , you got the result of the ministers company thats it.

LEAVE A REPLY

Please enter your comment!
Please enter your name here