Kovilpatti Lakshmi public issue opens 27th November, 2006

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Kovilpatti Lakshmi Roller Flour Mills Ltd. (Kovilpatti Lakshmi), a forty six years old diversified profit making company engaged in the activities of wheat flour milling, production of cotton yarn, sheet metal fabrication and generation of power through windmills, proposes to enter the capital market on 27th November 2006, with a public issue of 26,00,000 equity shares of Rs.10/- each at a premium of Rs.45/- per share (Issue price Rs.55/- per equity share) aggregating Rs 14.30 crores. The issue closes on 1st December 2006. Keynote Corporate Services Ltd. is the lead manager to the issue and Intime Spectrum Registry Ltd. is the Registrar to the issue.

           

Out of the total offer of 26,00,000 equity shares, 2,60,000 equity shares are reserved for allotment to employees, 5,20,000 equity shares for NRI's and FII's, 5,20,000 equity shares for banks, mutual funds and financial institutions, and 2,60,000 equity shares for existing shareholders, leaving net issue of 10,40,000 equity shares for the public. The existing 24,01,046 equity shares are listed on Bombay Stock Exchange Ltd. (BSE), Madras Stock Exchange and Coimbatore Stock Exchange and the additional 26,00,000 equity shares now on offer are also proposed to be listed on these stock exchanges.

 

It has a registered trademark "Kuthuvillaku" which is used for products marketed by flour and textile division. Its flour division manufactures wheat flour and markets it extensively in the South and Central regions of Tamil Nadu and Kerala. The textile division manufactures cotton yarn, which it markets primarily to clothing units in Maharashtra and Tamil Nadu and exports to East Asian countries such as Korea, Malaysia and Singapore.

           

The company proposes to utilise the net proceeds of the issue to part finance its Rs. 30.60 crore expansion plan. The plan includes investment into a Coimbatore-based Eltex Super Castings Ltd. and setting up of two additional windmills of 1.25 MW each for captive consumption. The company proposes to raise Rs. 14.30 crores through this public issue to part finance the said expansion. The balance funding of Rs.16.30 crores is being funded through term loan and internal accruals.

 

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