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Vishwaraj Sugar plans to hit capital market in February-March this year

14 Jan 2013 Evaluate

Karnataka-based Vishwaraj Sugar Industries is planning to hit the capital market in February-March 2013 with an initial public offer (IPO) to raise up to Rs 374 crore for doubling its production capacity. The company has an integrated plant at Belgaum district with a sugarcane crushing capacity of 5,500 tonnes per day.

The company will use the proceeds of the IPO for expansion, which include doubling the cane crushing capacity to 11,000 tonnes per day (TCD) from the present 5,500 TCD. The company would also expand the distillery capacity to 1,00,000 litre per day from the current 35,000 litres per day, which would lead to doubling of IMFL (Indian Made Foreign Liquor) production capacity to 5,000 boxes per day, Kumar added.

Further, the company will utilise part of IPO proceeds to expand its power co-generation capacity to 66 MW from current 36 MW.

Earlier, the company has received the market regulator Securities and Exchange Board of India’s (SEBI’s) nod to launch the IPO.

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