BCML picks up a 27.54% stake in Indo Gulf Ind
City based Saraogis of Balrampur Chini Mills Ltd (BCML) have picked up a 27.54 % controlling stake in New Delhi based Indo Gulf Industries Ltd, belonging to the S K Garg group.
By TNN |
KOLKATA: City based Saraogis of Balrampur Chini Mills Ltd (BCML) have picked up a 27.54 % controlling stake in New Delhi based Indo Gulf Industries Ltd, belonging to the S K Garg group. The Saraogis have bought the shares alongwith the company's liability for a total consideration of Rs 50 crore.
The Saraogis have bought 26,34,498 equity shares (or 27.54 % stake) for Rs 7 each amounting to Rs 1.61 crore, it said in a notice sent across to the stock exchanges on Friday.
In line with the Sebi takeover guidelines, the Saraogis will make an open offer for another 39% stake of Indo Gulf Industries for Rs 7 a piece. The Saraogis will have to cough up another Rs 2.6 crore or so to acquire the additional 39 % stake from the other stakeholders. Merchant banker Enam Financial Consultants will manage the open offer, company officials said.
The Saraogis have bought 26,34,498 equity shares (or 27.54 % stake) for Rs 7 each amounting to Rs 1.61 crore, it said in a notice sent across to the stock exchanges on Friday.
In line with the Sebi takeover guidelines, the Saraogis will make an open offer for another 39% stake of Indo Gulf Industries for Rs 7 a piece. The Saraogis will have to cough up another Rs 2.6 crore or so to acquire the additional 39 % stake from the other stakeholders. Merchant banker Enam Financial Consultants will manage the open offer, company officials said.
Units Capacity
| * Balrampur 12,000 TCD * Babhnan 10,000 TCD * Tulsipur 7,000 TCD * Akbarpur 7,500 TCD * Haidergarh 5,000 TCD * Mankapur 7,500 TCD (under implementation) * Rauzagaon 7,500 TCD ADVERTISEMENT * Kumbhi 8,000 TCD* Gularia 8,000 TCD * Meizapur 3,000 TCD Total 74,500 TCD |
Located close to BCML's existing sugar units in eastern Uttar Pradesh (UP), Indo Gulf Industries' Meizapur plant can crush 3,000 tonnes of sug-arcane per day (TCD). Since, the Meizapur plant is in close proximity to the cane growing area and BCML's existing unit, the operational integra-tion of the newly acquired unit with the BCML's existing sugar manufac-turing units is expected to be smooth, sources said. Set up in 1994, the Meizapur unit had downed shutters for the last three years.
"We will have to shell out a total of Rs 52.6 crore for the sugar unit, the company's liability as well as for the open offer," Mr Vivek Saraogi, man-aging director, Balrampur Chini Mills Ltd, told ET from New Delhi soonafter clinching the deal. BCML intends to fund the acquisition inter-nal accruals.
Elaborating, Mr Saraogi said: "The acquisition is in line with our
corporate strategy of integration. It is synergistic and is in the vicinity of our existing plants. This apart, the new acquisition will only help us take our bio-product model ahead."
It may be mentioned, the Saraogis had sometime last year acquired the Rauzagaon sugar unit of Dhampur Sugar Mills Ltd for Rs 182 crore in an all cash deal. Located near BCML's existing sugar units in eastern UP, Dhampur Sugar Mills' Rauzagaon plant in Barabanki district can crush 7,500 tonnes of sugarcane per day. It also has a cogeneration facility of 12 MW power as well as a sugar refinery plant.
ADVERTISEMENT
Apart from acquired Rauzagaon unit, the company's Balrampur unit crushes 12,000 tcd, Babhnan plant 10,000 tcd, Tulsipur unit 7,000 tcd, Akbarpur unit 7,500 tcd and the Haidergarh unit 5,000 tcd. The company is also in the process of setting up a greenfield 7,500 tcd Mankapur unit in eastern Uttar Pradesh and two integrated greenfield sugar complexes of 8000 tcd each at Lakhimpur Kheri district in central Uttar Pradesh.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
