RKDL IPO price-band fixed at Rs 56-64, eyes raising Rs 74 cr
Ravi Kumar Distilleries, plans to raise Rs 74 crore through its IPO and has fixed the price-band at between Rs 56-64 per share for the issue.
By PTI |
MUMBAI: Puducherry-based liquor-maker, Ravi Kumar Distilleries ( RKDL), plans to raise Rs 74 crore through its Initial Public Offer ( IPO) and has fixed the price-band at between Rs 56-64 per share for the issue.
The issue is scheduled to hit the market on December 8 and close on December 10.
"We plan to raise funds for expanding our existing facilities, to set up a redistillation plant, to part-finance the marketing and corporate branding expenses and for incremental working capital requirements," RKDL's Director, Badrinath Gandhi, told reporters here today.
The company, which is engaged in the business of manufacturing Indian Made Foreign Liquor (IMFL), operates in all segments including whisky, brandy, rum, gin and vodka, he said.
"The IMFL segment is a 125 million cases industry that is worth USD two billion. The per capita consumption of liquor in India is low at about 0.82 litres per annum as compared to the global average of 4.36 litres per annum, indicating a potential growth in the industry," Gandhi said.
The growth of the domestic alcohol industry was being driven by favourable demographics, rising disposable income and changing social habits leading to a shift from the unbranded segment towards the branded segment (IMFL).
RKDL, which has a strong presence in Puducherry, plans to expand its business in Kerala, Andhra Pradesh and Karnataka, Gandhi said.
"The total IMFL market in the southern states of India is around nine crore cases. We are eyeing a three to four per cent share in this market by the next fiscal (FY 11)," he said.
Currently, the company manufactures 14,25,000 cases per year.
"By 2011-12, we want to expand the capacity to 36 lakh cases per annum," he added.
The issue is scheduled to hit the market on December 8 and close on December 10.
"We plan to raise funds for expanding our existing facilities, to set up a redistillation plant, to part-finance the marketing and corporate branding expenses and for incremental working capital requirements," RKDL's Director, Badrinath Gandhi, told reporters here today.
The company, which is engaged in the business of manufacturing Indian Made Foreign Liquor (IMFL), operates in all segments including whisky, brandy, rum, gin and vodka, he said.
"The IMFL segment is a 125 million cases industry that is worth USD two billion. The per capita consumption of liquor in India is low at about 0.82 litres per annum as compared to the global average of 4.36 litres per annum, indicating a potential growth in the industry," Gandhi said.
The growth of the domestic alcohol industry was being driven by favourable demographics, rising disposable income and changing social habits leading to a shift from the unbranded segment towards the branded segment (IMFL).
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RKDL, which has a strong presence in Puducherry, plans to expand its business in Kerala, Andhra Pradesh and Karnataka, Gandhi said.
"The total IMFL market in the southern states of India is around nine crore cases. We are eyeing a three to four per cent share in this market by the next fiscal (FY 11)," he said.
Currently, the company manufactures 14,25,000 cases per year.
"By 2011-12, we want to expand the capacity to 36 lakh cases per annum," he added.
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