Sumeet Industries plans Rs 150cr expansion

In an interview with CNBC-TV18, Shankar Lal Somani, chairman, Sumeet Industries, spoke about the latest happenings in his company and sector.

Below is a verbatim transcript of his interview with CNBC-TV18's Latha Venkatesh. Also watch the accompanying video. Q: You have got permission to raise about Rs 60 crore through a qualified institutional placement (QIP), when will you raise it? What is the likely equity dilution because of that? A: We have an expansion plan of Rs 150 crore. We had already ordered machineries for the same. In April first week, we are raising Rs 60 crore by QIP. This is for our existing funds. Q: What is your expectation, how many new shares you will issue to raise this Rs 60 crore? A: Approximately, twenty million shares. Q: You said that you have already placed orders, when will this expansion start producing products for you? A: Expansion production will start by December this year. Q: How much will it increase your revenues by? A: Revenue will increase by Rs 150 crore. But this is second line expansion because we already have raw material and we are selling raw material at present. So, this will increase our net profit directly. Turnover will be Rs 150 crore plus. But net profit will be Rs 50 crore plus. So, we expect high EPS after this completion.