Dwarikesh Sugar equity issue this month

The Uttar Pradesh-based Dwarikesh Sugar Industries Ltd is making an entry into the capital market with public offer of 50 lakh equity shares of Rs 10 each.

The shares would be issued for a cash at a premium of Rs 55 per share aggregating Rs 32.5 crore.

The issue, which has UTI Securities as lead manager, has received approval from the Securities and Exchange Board of India (SEBI) and is slated to open by the end of November 2004.

The company operates a 6500 tonne of cane per day (TCD) sugar plant at Bijnor in the sugarcane-growing central Uttar Pradesh region.

It cogenerates 9MW of power.  Dwarikesh is now setting up a 30 kilo litre per day (KLPD) distillery for the manufacture of Industrial alcohol (ethanol) and a 200 tonne per day (TPD) sugar refinery with packaging facilities at a total capital expenditure of Rs 38.5 crore.

The projects will be funded by the public issue and term loan of Rs 6 crore.

The company is also increasing its cogeneration of power from 9MW to 17MW. The power project is proposed to be funded with term loans and internal accrual.

The company said it had improved its cost management and achieved higher sugar recovery from cane. 

The company's turnover in the last financial year was Rs 143.09 crore with net profit at Rs 9.76 lakh. 

As on September 30, 2004, the net worth of the company was Rs 37.87 crore.