Gulshan Sugars & Chemicals to come out with follow-on issue

172 Investors following Gulshan Sugars. Share this News with them.

0

Like this story, share it with millions of investors on M3

Gulshan Sugars & Chemicals to come out with follow-on issue

Gulshan Sugars & Chemicals is coming out with a follow-on public offer to raise Rs 26.4 cr through the fixed price route. Managing Director of Gulshan Sugars & Chemicals, CK Jain, says that out of the Rs 27 crore, 40% will go towards their manufacturing facility and balance is for a power plant and follow-on public issue expenses.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Gulshan Sugars lines up Rs 37cr capex plan Sweet gains for Gulshan Sugars Gulshan Sugars zooms to new high BSE | NSE 01/01/70 Are Mutual Funds betting on ?

Gulshan Sugars & Chemicals is coming out with a follow-on public offer to raise Rs 26.4 crore through the fixed price route.

Managing Director of Gulshan Sugars & Chemicals , CK Jain says that out of the Rs 27 crore, 40% will go towards the manufacturing facility and the balance is for a power plant and follow-on public issue expenses.

Excerpts from CNBC - TV18's exclusive interview with CK Jain:

Q: You are looking at raising about Rs 27 crore from this follow-on public offer, setting up a power generation unit and of course, enhancing your existing capacity for your ground calcium carbonate product. Could you break up the total Rs 27 crore for these tasks, how will it be placed between both these expansion projects?

A: Out of the Rs 27 crore, 40% is for the manufacturing facility and the balance is for the power plant and follow-on public issue expense. All put together, it comes to Rs 29 crore.

Q: When will the projects be completed?

A: These projects will be completed by March 13, 2007 and they will be put to operation by April 2007.

Q: How much of a saving would you have on your cost, on account of the captive power plant getting operational?

A: We are looking at somewhere around 4-5% minimum, but once this is fully utilized, it may go to 8-10%.

Q: In terms of revenues, you did about Rs 41.5 crore for 2006 and a PAT of just about Rs 2.5 - Rs 3 crore. By when will this expansion of 20,000 tonnes per annum of your calcium carbonate kick in? What sort of incremental revenues will you see in that particular fiscal as a result of this expansion?

A: The new projects, which we are taking, are different types of specialty products, which we will are placing for use in the paper industry and replacing the imports. The value addition in those products will be much higher and we will also have a benefit of excise duty over these products.

These are what we are targeting at and that is what will give us better revenues and better valuations.

Q: By when will your expansion of this 20,000 tonnes per annum be complete?

A: It will be completed by March 31, 2007 and will be operational with effect from April.

Q: What sort of margins do you enjoy in this line of business of calcium carbonate?

A: Previously, it has been somewhere 17-20% EBITDA and PAT had been 7-8%. But once the excise duty exemption is available on this product, it will go much higher.