Riga Sugar plans to raise Rs 35 cr thru GDRs

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Riga Sugar plans to raise Rs 35 cr thru GDRs

The Bihar-based Riga Sugar Co Ltd is giving final touches to its plans for raising Rs 35 crore through the GDR (global depository receipts) route for funding its expansion programme.

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The Bihar-based Riga Sugar Co Ltd is giving final touches to its plans for raising Rs 35 crore through the GDR (global depository receipts) route for funding its expansion programme.

According to sources, Riga Sugar has tied up with the London-based merchant banker, Elara Capital Services Ltd, for this purpose. Riga Sugar will be making a private placement.

The company would seek an approval from the shareholders at its extra-ordinary general meeting (EGM) scheduled on July 14. The issue is likely to be completed within a month or two after the EGM.

However, to what extent the promoters would be diluting its stake is not known. Currently, Mr O.P. Dhanuka, Chairman and Managing Director of the company, holds approximately 55 per cent in the company.

Riga Sugar's plant is located at Sitamarhi district of Bihar. Its current capacity is 2,500 tonnes crushed per day (tcd). In the first phase, the capacity will be increased to 4,200 tcd and will go on-stream by November. Work on the expansion programme has begun and orders for the machinery has already been placed.

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