Uttar Sugar Mills embarks on Rs 286 crore expansion at Muzaffarnagar

Mumbai, Mar 10 (UNI) Uttam Sugar Mills Ltd has embarked on a Rs 286 crore expansion plan to set up two new grassroot sugar units for manufacture of premium quality white sugar with a capacity of 4,500 TCD (tonnes of crushing per day) at Muzaffarnagar in Uttar Pradesh.

Briefing newspersons here today, its Chairman&Managing Director Rajkumar Adlakha said the expansion project also envisages setting up of two co-generation facility of 15 MW and 30 MW of power at Unit III and Unit IV respectively.

The project has been technically analysed by Sugar Technology Mission(STM) and Technology Information, Forecasting and Assessment Council(TIFAC) besides Department of Science&Technology at the Centre.

To part finance the expansion, Mr Adlakha said the company has proposed to enter the Capital market on March 16 with a public issue of 40,00,000 equity shares of Rs 10 each through 100 per cent book building process. With the price band fixed at Rs 290 to Rs 340, the Issue is expected to fetch Rs 116 crore at the lower level and Rs 136 crore at the upper end.

The issue is being made through a book building process wherein a minimum of 60 per cent of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs).

Further, upto 10 per cent of the Issue shall be available for allocation on a proportionate basis to non-institutional bidders and upto 30 per cent of the issue shall be available for allocation on a proportionate basis to Retail Individual bidders, subject to valid bids being received at or above the Issue price.

The Issue closes on March 21. IL&FS Investsmart Ltd and IDBI Capital Market Services are the Book Running Lead Managers for the Issue and Intime Spectrum Registry Ltd is the registrar.

UNI SN KU AW1715