IDBI Capital offers retail investors safety net scheme

Mumbai, Aug 21 (UNI) Usher Agro Ltd, an agri processing company, in its draft prospectus filed with the Securities and Exchange Board of India (SEBI) for its proposed public issue of equity shares has offered retail investors a safety net scheme.

The scheme is being offered by the IDBI Capital Market Services Ltd which is also the sole lead manager to the proposed issue, a company release here today said.

Under the safety net scheme, IDBI offers to buy back up to 800 equity shares from original resident individual allottees at the issue price of Rs 15 per share. The scheme will be open for a period of six months from the date of allotment of equity shares of the proposed issue. Usher Agro proposes to enter the capital market with a public issue of 1,20,12,000 equity shares of Rs 10 each at a premium of Rs five per share for cash aggregating to Rs 1801.80 lakh.

The issue constitutes 66.69 per cent of the post-issue paid up equity capital of the company.

The proposed issue includes 32,00,000 equity shares at a price of Rs 15 aggregating to Rs 480 lakh as per promoter's contribution. The balance 88,12,000 equity shares would be the net offer to public. Of the net offer to public a minimum of 50 per cent will be made available to retail investors on a proportionate basis.

The company is raising funds through this fixed price public issue to fund the wheat roller flour mill at Mathura of a capacity 250 MT per day, modernization of the existing rice mill plant at Mathura and to set up a new one MW co-generation power plant based on rice husk at Mathura for the active consumption.

UNI KKD MJ SKB1844