Dalmia Bharat Sugar and Industries today sought shareholders' approval to raise up to Rs 400 crore through issue of securities for increasing sugar manufacturing capacity.
The company has sought shareholders' approval through postal ballot on its special resolution to raise "an aggregate amount not exceeding Rs 400 crore" through issue of securities, according to a regulatory filing.
"In order to meet the increased demand for sugar consequent upon the liberalisation of the export policy by the government, the company proposes to raise funds for increase in its manufacturing capacity by undertaking further modifications to its existing projects or by incurring expenditure on new projects," the company said, explaining the rationale.
"For this purpose it proposes to raise funds by issue of securities as mentioned in the resolution to the extent of around Rs 400 crore," it added.
The company has five sugar plants in Uttar Pradesh and Maharasthra with cane crushing capacity of about 30,000 tonnes per day. Dalmia Bharat Sugar posted a revenue of about Rs 1,150 crore in 2014-15 financial year.
