The Hindu Business Line : Gulshan Sugars' first phase expansion may get over by Nov

Gulshan Sugars and Chemicals Ltd is expecting to complete the first phase of its Rs 175-crore expansion plan by November this year and the second phase by March 2007.

The Chairman and Managing Director of the company, Mr C.P. Jain, said, "With the completion of the first phase we would be producing an additional 10,000 tonnes of calcium carbonate annually."

After the second phase, this will go up by another 10,000 tonnes, taking the company's total capacity to 90,000 tonnes annually.

IPO plans

The company, which had filed its draft red herring prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) in June this year, is expecting to get the formal letter from SEBI by next week and then would be able to tap the capital market by end of August or September, he said.

The company proposes to issue 66,00,000 equity shares of Rs 8 each for cash at a premium in the proposed fixed price follow-on issue, he said.

Though the premium is yet to be fixed, the company hopes of a high premium given the present market price in the range of Rs 70-75, Mr Jain said.

The issue would constitute 51.51 per cent of the fully diluted post-issue paid-up capital of the company. The equity shares of the company are nowlisted on the Bombay Stock Exchange. It has now proposed to list the equity shares on National Stock Exchange also.

Apart from the 20,000 tonnes per annum additional calcium carbonate capacity, the company is also setting up a 3 MW captive power plant at its existing facility at Muzaffarnagar in Uttar Pradesh.

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