The group runs a tourism resort and has emerged as one of the fastest growing producers of branded agri-products and food items. The group has already appointed a consultant for the purpose and the total size of the issue would be around Rs 100 crore.
The group is planning for separate issues for all the five subsidiary companies to raise the Rs 100 crore.
"We have already appointed a fund manager for the issue and each company would have a small issue in the range of Rs 25-30 crore," said P N Manna, chairman and managing director of the MPS group of Companies.
The funds raised would be utilised to support the expansion plans of the company which is eyeing a national presence. "We are already present in 13 states and and the fund would be utilised to support the future growth plans of the group," he added.
Currently the group has a 400 acre State-of-the-Art facility at Jhargram, in the West Mindapore district, with fixed assets worth Rs 600 crore and is entitled to acquire 1000 acre more for future expansion plans.
The MPS Group of Companies was incorporated in the year 1994 and group includes five companies--MPS Greenery Developers Ltd, MPS Food Products Ltd, MPS Resorts and Hotels Ltd, MPS Industries and Agro Research Ltd and MPS Aqua Marine Pvt Ltd. The group is expecting a turnover of Rs 120 crore for the current fiscal, against Rs 80 crore reported a year ago.
"Our net profit this year is likely to be around Rs 30-35 crore from Rs 25 crore registered last year," he added.
Meanwhile, apart from IPO, the group was also planning to raise Rs 100 crore through secured debentures and bank finance.
"We are planning to raise around Rs 200 crore in the next one year through IPO, secured debentures and bank finance," the CMD said. In addition to this the MPS Group was issuing "Teak Bonds" worth Rs 4,000 each, with a maturity date of 25 years.
"We also have a forest with 20,000 trees, 90 per cent of which are teak trees," Manna said.
"At the end of the maturity period, we provide options to the bond holders of having either 40 cft teak log or Rs 1 lakh in cash," he explained.However, he refused to divulge further details, saying, "The matter under sub judice."
According to sources, the group had filed for approval with Sebi for the issuance of such bonds and the clearance was awaited. In the meantime the group had filed a suit at the court of law seeking the reason behind delay and the matter became sub judice as a result.
Manna said the group was issuing the bonds only after obtaining legal clearance, saying, "We are issuing such bonds with the permission of the court."
