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Vishwanath Sugar and Steel Industries IPO to hit market soon; files for DRHP

16 Jan 2012 Evaluate

Vishwanath Sugar and Steel Industries, a sugar producer, is coming up with an initial public offering (IPO) worth Rs 374 crore and has filed draft red hearing prospectus with market regulator Securities Exchange Board of India (SEBI).

Ashika Capital Limited is the book running lead manager and Link Time India is the registrar to the issue.

The company intends to utilize issue proceeds towards expansion of Sugar cane crushing capacity from 5500 TCD to 11000 TCD and augmentation of Co-Generation Power Plant from 36.4 MW to 66.4 MW (Sugar and Co-Generation Project) and expansion of Distillery capacity to 100 KLPD by setting up new Distillation Plant of 65 KLPD and augmenting the IMFL production Capacity from 2500boxes to 5000 boxes per day (Distillery Project).

Vishwanath Sugar and Steel Industries is engaged in the business of production of sugar, alcoholic spirits by distillation including ethanol, blending and bottling of Indian Made Foreign Liquor (IMFL) and generation of power. It owns an integrated sugar production facility located at Bellad Bagewadi, Belgaum District in North West Karnataka.

The company initially commenced distillery operations in the year 2001 with a capacity of 35 KLPD. The sugar production and co-generation facility started operations in the year 2006 with a capacity of 2500 TCD and 14 MW respectively. Further, with the continued support of the farming community in the area it was possible for company to expand sugar unit capacity from 2500 TCD to 5500 TCD in the year 2009 which further enhanced its power generation capacity from 14 MW to 36.4 MW.

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