Raj Oil Mills is going public with an initial public offering of 95,00,000 equity shares of Rs 10 each with a price band of Rs 100 to Rs 120 per equity share.
The issue size will be Rs 95 crore at the lower end of the price band and Rs 114 crore at the upper end of the price band. The issue would constitute 26.38% of the fully diluted post-issue paid-up capital of the company.
The issue will open on July 20, 2009, and will close on July 23, 2009.
The proceeds from the proposed issue are expected to be deployed for setting up various facilities at Manor, Thane district, Maharashtra. These would include a refinery of 200 TPD, which can process Sunflower, Soyabean, Groundnut, Palm, Cotton Seed oils; a crushing unit of 200 TPD for Groundnut and Copra; a Palm Fractionation unit of 100 TPD; and a Vanaspati Ghee unit of 50 TPD, a Ayurvedic and Cosmetic unit of 5 TPD and In-house Blow Moulding Plant for PET Bottles.
The proposed issue will also fund setting up of crushing unit of 200 TPD for sesame and mustard at Bagru, Jaipur district, Rajasthan; for brand promotion, expansion of Marketing & Distribution network and for setting up of Research and Development facilities. The margin money for working capital requirement and issue expenses will also be met out of issue proceeds.
The book running lead manager is Karvy Investor Services Limited. The co-book running lead managers are India Capital Markets Private Limited and PL Capital Markets Private Limited.
The equity shares offered through the Red Herring Prospectus of the company are proposed to be listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE).
Raj Oil Mills is engaged in the business of Crushing and Oil Filtration with a capacity of 5,000 TPA and 30,000 TPA respectively. It markets products under the following brands: Cocoraj (Coconut Oil), Cocoraj Cool (Ayurvedic Oil), Guinea Groundnut Oil (Double Filtered Oil), Guinea Lite Groundnut Oil (Refined Oil), Guinea Lite Sunflower Oil (Refined Oil), Guinea Lite Cottonseed Oil (Refined Oil), Guinea Lite Soyabean Oil(Refined Oil), Tilraj Til Oil, Mustraj Mustard Oil and Cocoraj Jasmine. The aforementioned products are sold under three umbrella brands --- ‘Cocoraj’, ‘Guinea’ and ‘Raj’. These brands are in existence for more than 5 decades. Due to its vast experience in the edible oils business, the company has strong in-house manufacturing capabilities, wide product portfolio and brand presence.
The company’s business strategy is to maintain versatile manufacturing capabilities, produce high quality products and market a wide product range. The company’s networth comprising share capital, reserves and surplus as on December 31, 2008, is at Rs 100.33 crore. Its total assets are at Rs 162.47 crore.
