Bajaj Hind plans Rs 100 crore public issue

Bajaj Hindusthan has decided to raise Rs 100 crore through a public issue. The issue, which aims at part-financing a Rs 375-crore expansion plan, has a 15 per cent green-shoe option reserved for the promoters.

According to an intimation given to the stock exchanges, the Sishir Bajaj-controlled sugar marker aims to raise capacity from 31,000 tonne crashed per day (TCD) to 52,000 TCD by setting up new greenfield plants.

The expansion plan would raise production capacity from 0.6 million tonne (including project under implementation) to around 1.0 million tonne. The board approved the Rs 100 crore issue on Saturday.

In addition to setting up green field projects, Bajaj Hindusthan is in the process of acquisition of 24 sugar mills. Frustrated with their poor financial show, Uttar Pradesh State Sugar Corporation has put them on the block.

The company has emerged as the highest bidder in the state government's privatisation programme, leaving behind the other two bidders, Balrampur Chini and DCM Shriram.

The winning bid was estimated to be around Rs 200 crore, industry sources said. The combination of the green field project and the proposed acquisition of the 24 sugar mills, will make Bajaj Hindustan by far the largest company in the Rs 25,000 crore domestic sugar industry.