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Fine Organic Ind to raise Rs 600 cr, fixes IPO price band at

Press Trust of India  |  Mumbai 

Fine Organic Industries, a said it has fixed a price band of 780 to 783 per equity share to raise around 600 crore through an (IPO).

The offer for sale will see divestment of 25 per cent of stake of 76,64,994 equity shares by the existing shareholders. The issue will open on June 20 and closes on June 22.

The 48-year old company held entirely by the promoters family had filed draft papers with markets regulator Sebi to float the IPO in February.

It has three manufacturing facilities in the suburbs of the megapolis, including Ambernath, Dombivli and Badlapur, with a total installed capacity of about 64,300 tonnes per annum (tpa).

"The company has drawn up capital expenditure of Rs 270 crore to expand capacities over the next 2 years and has already invested Rs 70 crore towards equity portion," Fine Organics told reporters at the IPO roadshow here.

The company is expanding its by adding a capacity of 32,000 tpa at a cost of Rs 130 crore, and it plans to fund 30 per cent from equity and 70 per cent from debt, he said.

It is also looking at investing Rs 55 crore in setting up in in association with Dutch family-owned Zeelandia International, a part of the Royal Zeelandia group, he said.

The company clocked net revenue of Rs 581 crore for the nine-months period ended December 2018. It has launched 387 products and exports accounts for 65 per cent of the total revenue, Shah added.

Meanwhile, as part of the global expansion plans, it is also setting up a joint venture firm named FineAdd with the German partner Adcotec, to own and operate a 10,000 tpa facility in in Leipzig, Germany, which will be operational by Q3 FY20, according to the offer document.

Fine Organic will own 50 per cent and will own the other 50 per cent, it added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 14 2018. 18:05 IST