Vimal Oil

Mumbai, Mar 7 (UNI) Ahmedabad based Vimal Oil&Foods Ltd, edible oil maker is entering on March 14 with a right cum public issue of share to raise Rs 35.83 crore for the purpose of its diversification project in the fast growing Snack and Food processing sector.

The Company will infuse the internal accruals of Rs 50 lakh and avail the term loan of Rs five crore, according to Mr Jayesh C Patel, as the CMD of Vimal Oil &Food.

The public issue is for size of 98,66,667 equity shares of Rs ten each for cash at a premium of Rs 20 per share. The public issue closes on March 23 along with the Right issue. The Right Issue of 27,30,000 equity share to the existing shareholders to raise Rs 68.2 crore has already opened for subscription.

The equity shares of Rs ten each have been offered at a premium of Rs 15 per share, in the ratio of three equity shares for every five shares held, on January 29, 2007 which is the record date fixed for the offer. The plant has located at Mehsana,in north Gujarat.

The state of the art technology permits continous blending of ingredients and facilitates making of a larger variety of products while reducing waste and saving on engergy during production, Mr Patel told reporters here.

The commercial production would be start from October 2007 and within six months will target in the full capacity of product. The Company's will achieve a turnover of Rs 80 crore from October 2007 to March 31, 2008. The Company have it's own 950 network across the country, he added.

UNI