Chennai, Oct 31 (UNI) Empee Distilleries, engaged in the manufacture of Indian Made Foreign Liquor (IMFL), is entering the capital market on November one to raise about Rs 190 crore to part finance its expansion and diversification plans.
Addressing a press conference here, company Chairman and Managing Director M P Purushothaman said the company proposed to enter the capital market with a public issue of 48 lakh shares of Rs ten each through the 100 per cent book building process.
He said the price band had been fixed at Rs 350 to Rs 400. The proceeds would be utilised for setting up a grain-based distillery in Nellore district of Andhra Pradesh at a cost of Rs 61 crore and a Blending and Bottling IMFL Plant, also in Andhra Pradesh.
The proceeds would also be used for expanding the existing distillery unit at Mevaloorkuppam in Kancheepuram district and augment its capacity to handle five lakh cases per month from the present 3.20 lakh cases per month.
The company, selling IMFL in Tamil Nadu and Kerala, would make its foray into Andhra Pradesh and Karnataka and enter the Northern market after strengthening its base in the four Southern States, Mr Purushothaman said.
He said the company, as part of its diversification plan, proposed to enter the real estate sector and develop 12.23 lakh sqft of residential space. The project would be developed in three phases and in the first phase, two lakh sqft would be developed with an investment of Rs 31 crore out of the IPO proceeds.