Birla Group to raise Rs 100-cr from market
Oudh Sugar Mills has obtained its board of directors in principle approval for the enabling resolution. It now intends to seek its shareholders approval.
By TNN |
KOLKATA: The K K Birla group on Tuesday decided to raise upto Rs 100 crore of fresh resources from the market to finance future Oudh Sugar Mills’ projects like setting up of a greenfield sugar unit at Hatta in eastern Uttar Pradesh. The company has informed the Bombay Stock Exchange about this.
For starters, Oudh Sugar Mills has obtained its board of directors in principle approval for the enabling resolution. It now intends to seek its shareholders approval.
When contacted, Oudh Sugar Mills’ chief financial officer U S Beria said: “While the board is yet to decide on the specific instrument, it is considering both the equity and debt options to raise upto Rs 100 crore”.
Elaborating, Mr Beria said: “Though the company is at this stage undecided on whether it will go for an overseas quotation or a domestic issue, it has appointed Edelweiss Capital Limited as merchant banker.”
For the moment, the company is exploring all options, ranging from an issue of GDRs, ADRs, an issue of foreign currency convertible bonds or equity shares under qualified institutional placement guidelines, Mr Beria added.
Oudh Sugar Mills’ officials close to the development hinted that the company could raise the Rs 100 crore from the market to meet bulk of its commitment for the proposed greenfield project entailing an investment of Rs 336 crore as well as other expansion plans like enhancing the distillery capacity of its Hargaon unit in UP for an estimated Rs 100 crore.
The company hopes to complete its on-going expansion exercise by November 2006. The plans include enhancing the crushing capacity of its Narkatiaganj unit in Bihar to 7,500 tonnes crushed per day (tcd) from 5,000 tcd in Bihar and setting up of a 5 mw co-generation plant. The company’s sugar manufacturing unit at Hargaon is being expanded from 7,500 tcd to 10,000 tcd and a co-generation plant of 8 MW being set up. While the expansion exercise at Narkatiaganj unit involved an investment of Rs 37 crore, that of Hargaon entailed an investment of Rs 108 crore.
It has, for the time being, deferred its plans to expand the sugarcane crushing capacity of its Rosa unit in UP by 1,300 tcd from 4,200 tcd and set up a co-generation plant of 20 MW for an investment of Rs 117 crore.
Incidentally, the company raised close to about Rs 39 crore through a rights issue last June to reduce debt and meet a portion of its working capital requirements. At present, Oudh Sugar Mills’ lead promoters, the Birlas holds close to 47.8%. Mutual funds, financial institutions, banks as well as foreign institutional investors collectively held 14.99%. The Oudh Sugar scrip was quoting at Rs 116.05 on the BSE on Tuesday.
For starters, Oudh Sugar Mills has obtained its board of directors in principle approval for the enabling resolution. It now intends to seek its shareholders approval.
When contacted, Oudh Sugar Mills’ chief financial officer U S Beria said: “While the board is yet to decide on the specific instrument, it is considering both the equity and debt options to raise upto Rs 100 crore”.
Elaborating, Mr Beria said: “Though the company is at this stage undecided on whether it will go for an overseas quotation or a domestic issue, it has appointed Edelweiss Capital Limited as merchant banker.”
For the moment, the company is exploring all options, ranging from an issue of GDRs, ADRs, an issue of foreign currency convertible bonds or equity shares under qualified institutional placement guidelines, Mr Beria added.
Oudh Sugar Mills’ officials close to the development hinted that the company could raise the Rs 100 crore from the market to meet bulk of its commitment for the proposed greenfield project entailing an investment of Rs 336 crore as well as other expansion plans like enhancing the distillery capacity of its Hargaon unit in UP for an estimated Rs 100 crore.
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The company hopes to complete its on-going expansion exercise by November 2006. The plans include enhancing the crushing capacity of its Narkatiaganj unit in Bihar to 7,500 tonnes crushed per day (tcd) from 5,000 tcd in Bihar and setting up of a 5 mw co-generation plant. The company’s sugar manufacturing unit at Hargaon is being expanded from 7,500 tcd to 10,000 tcd and a co-generation plant of 8 MW being set up. While the expansion exercise at Narkatiaganj unit involved an investment of Rs 37 crore, that of Hargaon entailed an investment of Rs 108 crore.
It has, for the time being, deferred its plans to expand the sugarcane crushing capacity of its Rosa unit in UP by 1,300 tcd from 4,200 tcd and set up a co-generation plant of 20 MW for an investment of Rs 117 crore.
Incidentally, the company raised close to about Rs 39 crore through a rights issue last June to reduce debt and meet a portion of its working capital requirements. At present, Oudh Sugar Mills’ lead promoters, the Birlas holds close to 47.8%. Mutual funds, financial institutions, banks as well as foreign institutional investors collectively held 14.99%. The Oudh Sugar scrip was quoting at Rs 116.05 on the BSE on Tuesday.
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