LT Overseas IPO oversubscribed 7 times

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LT Overseas, maker of Dawat brand of rice, has been received good response from all type of investors, whether qualified institutional investors, HNIs or retail investors.

The company entered capital market with an initial public offering, IPO of 70,35,714 equity shares of Rs 10 each for cash at a premium to be decided through the book-building process. The issue price was between Rs 50 and Rs 56 per equity share of Rs 10 each.

The issue has oversubscribed 7.18 times, as per NSE website.

Total bids received for the issue were more than 5.05 crore equity shares against its total issue size of 70.35 lakh shares.

All investors have responded well, wherein qualified institutional investors, non-institutional and retail investors' portion have oversubscribed 8.4, 4.3 and 7.7 times, respectively.

Subscription Details

Subscription details	Times
Qualified institutional buyers	8.39
Non institutional investors	4.29
Retail individual investors	7.69
Employee Reservation	1.10
Total	7.18

 

 

 

The company's business is of milling, processing, and marketing of rice and manufacturing of rice food products. It is also engaged in R&D of rice and rice food products. It has 21% volume share for basmati rice in India and also owns brands such as 'Dawat' and 'Heritage'.

LT Overseas is going to make total investment of Rs 31.7 crore, which includes to set up new Parboiled rice processing and milling capacity at cost of Rs 7 crore, to set up new milling line for producing value added rice at cost of Rs 4.1 crore, to add balance equipments and automation of existing facility with the cost of Rs 3.1 crore, to set up Silos and Flat storage facility at cost of Rs 9.8 crore, new white rice storage with the cost of Rs 3.1 crore and for generating power for captive consumption at cost of Rs 5 crore.

In the FY06, the company's net sales rose 11% at Rs 400 crore versus Rs 360 crore. Its PAT was up 124% at Rs 11.1 crore from Rs 5 crore. The operating profit surged 32% at Rs 28.2 crore versus Rs 21.4 crore. The company's OPM stood at 7% versus 5.9%.

LT Overseas registered net sales at Rs 78.2 crore in the Q1FY07. The net profit stood at Rs 2.6 crore. The operating profit posted at Rs 8.3 crore. The OPM was at 10.6%.