Basmati rice manufacturer L T Overseas Ltd (LTOL) is planning to tap the capital market in October to raise about Rs 60 crore for its expansion, which includes increasing both milling and grain storage capacity. | |
| "We want to raise Rs 60 crore from IPO for our expansion plans that includes increasing our installed paddy processing capacity to 31 tonnes per hour from the present 25 tonnes per hour," company's CMD V K Arora told reporters here. |
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| The company, which produces basmati rice under the brand 'Daawat' was expecting to hit the capital market with its public offer by third week of October, he said. |
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| Meanwhile, Haryana Governor A R Kidwai today inaugurated the company's new warehousing unit meant for storage of paddy, complete with drying and cleaning equipment, of 10,000 tonnes capacity with an investment of Rs 2.5 crore. |
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| Kidwai termed the setting up of the new warehousing unit as an important step because it would help in preserving the qualities for which basmati rice is known world over. |
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| The issue proceeds worth Rs 36 crore would be utilised for capacity expansion and modernisation of existing plant at Bahalgarh in Sonepat, while Rs 24 crore would be required for working capital. |
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| The company, which posted a net profit of Rs 11 crore over a turnover of Rs 400 crore, has recently allotted 7.18 lakh shares to Bennett, Coleman and Co Ltd at Rs 70 per shares. Elaborating more on the expansion, Arora said the company would be setting up another warehousing unit of 30,000 tonnes capacity with an investment of Rs 7.5 crore. |
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| Besides, it would invest Rs seven crore each for setting up a new rice milling line and parboiled rice unit. |
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