The Hindu Business Line : KM Sugar IPO opens on Oct 14

Mr Aditya Jhunjhunwala (left), MD, KM Sugar Mills Ltd, with Mr K Srinivas, President, UTI Securities Ltd, at a press conference held in Mumbai on Monday. - Paul Noronha

Mumbai , Oct 10

KM Sugar Mills Ltd today said that it plans to enter the capital market with an IPO to raise Rs 33.28 crore to fund its expansion programme.

The company, which has a sugar plant in Faizabad district, Uttar Pradesh, is making the offer of 64 lakh equity shares of Rs 10 each at a premium of Rs 42 per share.

The company plans to increase its cane crushing capacity from 4,500 tonnes crushed per day (TCD) to 6,500 TCD.

KM Sugar estimates a total investment of Rs 37.56 crore for the expansion and working capital requirements, along with incidental expenses.

The civil works for the plant have been completed and the company aims to commission the plant with expanded capacity in mid-November.

"The proposed expansion of crushing capacity will enable the company to crush maximum cane in the limited crushing season, thus reducing the cost of production," said a company official. It plans to set up a 60 kilolitres per day fuel grade ethanol plant in Ahmednagar district, Maharashtra.

The IPO is slated to open on October 14. The issue is being lead managed by UTI Securities and closes on October 19.

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KM Sugar IPO opens on Oct 14