Sita Shree Food Products is open for subscription with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share for cast aggregating Rs 31.5 crore.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said don't apply.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Don’t Apply	Investors should ignore primary market for the time being as the market sentiments are weak. All stocks are available at cheap price range in the secondary market.
SP Tulsian (Investment Advisor)	Don’t Apply	The features of the issue are pathetic and negative on all the fronts, and do not seem attractive from any angle. For FY07, the total income of the company was at Rs 82 crore with PAT of Rs 93 lakh on an equity of Rs 7 crore, resulting into an EPS of Rs 1.33, which implies a PE multiple of 20 times at the lower end of Rs 27. Post issue equity of close to Rs 23 crore would not be able to shown an respectable earnings, which would enable the company to declare any dividend.   The present business of the company of flour mill is not attractive at all. Now the company is setting up a solvent extraction plant, of 500 TPD, with an oil refinery of 100 TPD and a flour mill of 275 TPD. It reminds us today about the olden days of 94-95, when over 20 companies from Indore region used to come out with a public issue for setting up their solvent extraction plant. As of today none of them are surviving.   Probably, the same fate would befall this company. Despite the shares being issued at a price of Rs 27 do not merit even a glance. However, as it is the trend today, the promoters may indulge in short term momentum, if the issue does not get any response. Clear advice to stay away!

The issue will close for subscription on March 14, 2008. Equity shares are proposed to be listing on the BSE and NSE.

The objects of the issue are to Finance the capital expenditure programs - setting up a Solvent Extraction Plant having 500TPD capacity, setting up a oil refinery for Solvent Extraction Plant having 100TPD capacity, setting up a Lecithin plant for processing the by products of Solvent Extraction Plant having 5TPD capacity at Badia Kima (M.P.) and setting up a Flour Mill of 275TPD. Other objects are to meet working capital margin requirement of the business, to meet the expenses of the issue and to enable listing of the equity shares of the company on the stock exchanges.

Sita Shree is in the business of wheat and pulse processing. The product portfolio of the company consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold.

It has reported sales of Rs 80.73 crore and net profit of Rs 0.92 crore for the year ended March 2007.

Lead manager to the issue is Keynote Corporate Services Limited and Ankit Consultancy Private Limited is the registrar.