Somi Conveyor Beltings to list on July 24

Somi Conveyor Beltings, a manufacturer of  Rubber Conveyor Belts of various sizes used for industrial applications of material handling in various industries, will list with 1,17,79,656 equity shares on the BSE. 

The company had entered the capital market between June 24-27, 2008 with an issue of 62,27,860 equity shares of Rs 10 each at a fixed price of Rs 35 (including a premium of Rs 25 per equity share) aggregating to Rs 2179.75 lakh.

The issue comprised a contribution by promoters of 14,99,286 equity shares of Rs 10 each at a price of Rs 35 per equity shares aggregating to Rs 524.75 lakh. This leaved a net issue to the public of 47,28,574 equity shares aggregating to Rs 1655 lakh, including an allocation of at least 10% of the net public issue to QIBs.

Ashika Capital Limited is the Lead Manager to the Issue.

The company proposed to utilize the net proceeds of the issue to part finance its Rs 3509 lakh project cost. The expansion and modernization project consists of setting up of new manufacturing unit, purchase of land and building for office use, meeting margin money requirement for enhanced working capital and meet the interest cost during the construction period. The project is proposed to be funded through promoters contribution of Rs 1004 lakhs, IPO proceeds of Rs 1655 lakhs and term loan from Punjab National Bank of Rs 850 lakhs.

Somi is setting up new factory unit with an installed capacity of 1,72,080 MPA for manufacturing rubber conveyer belts of 2000 mm width at Village Tanawara, Jodhpur, Rajasthan. The capacity can be stretched up to 2,00,000 MPA. The Project has been appraised by Punjab National Bank, Technical Cell, New Delhi and the Bank has sanctioned loans of Rs 850 Lakhs. Out of the sanctioned limit, an amount of Rs. 804.68 Lakhs has already been disbursed by Punjab National Bank as on 31st May 2008.The Commercial Production is expected to commence by August, 2008.