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Kovilpatti Lakshmi Roller Flour Mills, 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, is open for subscription 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 crore. The issue closes on December 1, 2006.
 
Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Majority experts said don't apply.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Don't Apply	Kovilpattil Mills is an average issue. Investors should ignore this issue.
Manish Bhatt (Prabhudas Lilladher)	Apply	Kovilpatti Mills is not a very attractive issue. Investors can invest in this issue for short term. It is an average issue.
SP Tulsian (Investment Advisor)	Don't Apply	Kovilpatti Mills is not an attractive issue. Investors should ignore this issue.

 

 

 

 

 

 

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 and setting up of two additional windmills of 1.25 MW each for captive consumption. The company proposes to raise Rs 14.30 crore through this public issue to part finance the said expansion. The balance funding of Rs 16.30 crore is being funded through term loan and internal accruals.
 
Keynote Corporate Services is the lead manager to the issue and Intime Spectrum Registry is the registrar to the issue.

The company is proposing to expand the scope of its sheet metal operations through the acquisition of Eltex Super Casting and restarting of Eltex's foundry units. It will cater to the demands of leading domestic automotive and engineering companies as well as revive the European business of Eltex.
 
Kovilpatti Lakshmi has reported a turnover of Rs 93.07 crore and profit after tax of Rs 3.11 crore for financial year ended on 31/03/2006. As per un-audited results for half year ended 30/09/2006, company has achieved a turnover of Rs 55.70 crore and profit after tax of Rs 1.89 crore. The two windmills are expected to generate a net power output of approximately 68 lakh units.