Sheetal Refineries IPO - DRHP filed

Sheetal Refineries is a South-India based edible oil refiner. Company has filed draft red herring prospectus with SEBI for its initial public offering issue of upto Rs 60 crore.

Sheetal Refineries is engaged in trading and refining of rice bran oil, sunflower oil, soya bean oil, cottonseed oil, palm oil and groundnut oil. Major markets for company are Andhra Pradesh and Tamil Nadu.

Company would use IPO proceeds for setting up additional refining unit with the refining capacity of 75000 TPA at Nandigama. It’s subsidiary, M/s. Sheetal Siddhi Veg Oil Pvt Ltd would part of funds for increasing the refining capacity by 30,000 TPA at Thimmapur. At present, company has installed capacity of refining edible oil of 30000 TPA and is proposing to set up an additional unit for enhancing its installed capacity by 75000 TPA for catering increasing demand of edible oils.

For six months ended on September 2010, Sheetal Refineries has reported net profit of Rs 3.12 crore on total income of Rs 179.84 crore.