v Issue size of Rs. 60 Cr.
v Listing on NSE & BSE- Main Board
Lower Price Band: Rs. 55 per share
Upper Price Band: Rs. 60 per share
Offer Opens on: Monday, September 30, 2019
Offer closes on: Friday, October 4, 2019
Minimum Bid lot of 240 equity shares
Thereafter in multiples of 240 equity shares
Vishwaraj Sugar Industries Limited (henceforth referred to as ‘VSIL’ or ‘Company’), is an integrated sugar manufacturing company based in Belgaum district of Karnataka, having licensed sugarcane crushing capacity of 11,000 TCD and an integration for Rectified Spirit, Extra Neutral Spirits (ENA), Indian Made Liquor (IML), Vinegar, Compost, Carbon Di-oxide and Co-generation Power Plant. The Company is now entering the capital markets with initial public offering for 1,00,00,000 equity shares of face value of Rs. 10 per share are being offered through book building process at a price band of Rs. 55 – Rs. 60/- per share. The offer will open on Monday, September 30, 2019 and close on Friday October 4, 2019.
The public can bid in minimum lot size of 240 shares and in multiples of 240 shares thereafter. The QIB, Non-Institutional Investor and Retail portion is 10,00,000, 40,00,000 and 50,00,000 equity shares respectively in accordance with the SEBI ICDR Regulations. Under-subscription, if any, in any category, except in the QIB Portion, would be allowed to be met with spill over from any other category or a combination of categories.
The funds raised through the public offer are proposed to be primarily utilized to Finance the working capital requirement of the Company. The equity shares of the company are proposed to be listed on the BSE Ltd. (‘BSE’) and National Stock Exchange of India Ltd (‘NSE’). The Book Running Lead Manager to the Offer is Aryaman Financial Services Ltd and Registrar to the Offer is Bigshare Services Pvt. Ltd.
About Vishwaraj Sugar Industries Ltd.
Vishwaraj Sugar Industries Ltd has been promoted by the Katti family, who are one of the prominent families from Belgaum. Mr. Umesh Katti is the Non-Executive Chairman, Mr. Nikhil Katti is the Managing Director & Mr. Mukesh Kumar is the Whole Time Director. The Company has freehold land of almost 62 Lakhs Sq Ft and the Book Value of Fixed Assets of the Company is more than Rs. 250 Crores. The manufacturing unit of the Company is strategically located in High Recovery zones for sugar production. There were 28 villages in Taluka Hukkeri, 12 villages in Taluka Chikkodi and 9 villages in Taluka Gokak in Belgaum District reserved for the supply of sugarcane. Further the Company has cordial and strong relationships with sugarcane farmers.
The company had reported Pre-tax operating profit of Rs. 11.39 crores on sales of Rs. 307.87 crores in FY19 as stated in the financial statements of the RHP.
About Aryaman Financial Services Ltd:
Aryaman Financial Services Ltd is the Book Running Lead Manager to the Issue, part of the financial solutions group providing Investment Banking, Secretarial Services and Market Making to Indian corporates. The merchant banking team has successfully handled transactions worth more than Rs. 1000 Crores in last five years and further has mandates to execute many transactions in near future. With focus on the mid corporate space it has been one of the first Investment Bank in India to list a company on the SME exchange in 2012 and on the BSE Start-Up platform in 2019. Also the firm has consistently bagged the best performer award from BSE in last six years.
Disclaimer: Vishwaraj Sugar Industries Limited ("Company") is proposing to make, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares (“IPO”) and has filed the Red Herring Prospectus (“RHP”) with Registrar of Companies, Karnataka at Bengaluru. The RHP is available on the website of SEBI, BSE and NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com respectively and the website of the Book Running Lead Manager at www.afsl.co.in.
Any potential Investor should note that investment in equity shares involves a high degree of risk. For details, relating to such risk, potential investors should refer to the section titled “Risk Factors” in the Red Herring Prospectus.