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K S Oils plans to raise upto USD 20 mn for its expansion

Written by: Staff
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Mumbai, Aug 24 (UNI) K S Oils, one of India's leading integrated edible oil manufacturing companies, plans to raise US dollar 20 million to fund its expansion plans.

A K S Oils release quoted its Chairman Ramesh Garg saying ''We are contemplating a host of options like Foreign Currency Convertible Bonds (FCCB), Global Depository Receipts (GDRs), securities convertible into equity shares in the international markets and private equity.'' The raised fund would be used for strategic acquisitions for adding new manufacturing facilities in major oilseeds growing belts of India, the release said.

These facilities would act as supply source to service the Central Distribution Points, to be located in 200 regions, in order to ensure a pan-India presence.

At a recently held meeting, the company's board of directors has decided to increase the investment limit of Foreign Institutional Investors (FIIs) in the paid-up equity share capital of the company upto 49 per cent of the total share capital/voting rights subject to the approval of the members at the extraordinary general meeting of the company scheduled to be held on September 15.

The board has also made allotment of 9,00,000 equity shares of Rs 10 each at a premium of Rs 215 per share on preferential basis to the promoters and others as per the SEBI (DIP) guidelines, 2000.

''The money raised is being used to fund acquisition of the plant at Jodhpur, for increasing production capacity and venturing into newer geographies of operation. This will result in an efficient and cost effective ''go to market strategy''. The acquisition will specifically help the company service the Rajasthan market,'' Mr Garg added in the release.

UNI SN SSS SKB1936

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