Lakshmi Roller Mills to enter capital market on Nov 27

Chennai, Nov 24 (UNI) Kovilpatti Lakshmi Roller Flour Mills Limited, a diversified company, engaged in flour milling, textiles and engineering, is entering the capital market to raise Rs 14.30 crore to take up expansion plans, involving an investment of Rs 30.60 crore.

Addressing a press conference here, Mr Suresh Jagannathan, Managing Director said the company would enter the capital market on November 27 with a public issue of 26,00,000 equity shares of Rs ten each at a premium of Rs 45 per share. The issue would close on December one.

The company proposed to utilise the net proceeds of the issue to part finance its Rs 30.60 crore expansion plan, which included investment into the Coimbatore-based Eltex Super Castings limited and setting up of two additional windmills of 1.25 MW each for captive consumption.

The company would part finance the expansion plan with Rs 14.30 crore, raised in the capital market and fund the balance of Rs 16.30 crore through term loan and internal accurals, he informed.

He said the company currently had three divisions, Flour Mill, Spinning and Engineering. While the milling and spinning capacities were sizeable, the engineering division was relatively small and the management intends to focus on the area.

As part of this, the company had taken over Eltex Super castings, engaged in the manufacture of Grey iron, SG iron and Alloy iron castings and proposed to expand the scope of its sheet metal operations.

The company had reported a turnover of Rs 93.07 crore last year and and hoped to end next year with a turnover of Rs 140 to Rs 150 crore. The contribution from the Engineering division was so far insignificant, but with the takeover of Eltex Super castings, the division was expected to contribute 30 to 35 per cent in the total turnover, he added.

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