Raj Oil Mills plans to raise Rs 114 cr through IPO

Edible oil firm Raj Oil Mills today announced its plan to raise up to Rs 114 crore through an initial public offer (IPO) for expansion as well as for setting up new factories in Rajasthan and Maharashtra.

The price band of the IPO, which will hit the capital market on July 20 and close on July 23 is Rs 100-120 per equity share of Rs 10 face value, Raj Oil Mills Chairman and Managing Director Shaukat S Tharadra told reporters here.

The issue would constitute 26.38 per cent of the fully diluted post issue paid up capital of the company, he said.

Raj Oil Mills market brands are Cocoraj and Guinea Groundnut Oil, and Guinea Light Sunflower Oil. Its present crushing capacity is 5,000 tonnes per day, while filtering capacity is 30,000 tonnes per day including refining.

The company would utilise the funds raised to expand its existing crushing capacity by 200 tonnes at Manor in Maharashtra and to set up a new unit with a crushing capacity of 200 tonnes per day at Bagru in Rajasthan.

It will also set up a refining unit with a capacity of 200 tonnes per day in Maharashtra.