Vimal Oil and Foods Ltd public issue to hit mkt

Ahmedabad, Mar 9: City-based Vimal Oil and Foods Limited, engaged in edible oil business is coming out with a rights-cum-public issue on March 14 to raise Rs 35.83 crore for the purpose of its diversification project in the fast-growing Food Processing sector.

The public issue is for 96,66,667 equity shares of Rs 10 each for cash at a premium of Rs 20 per share, which will open for subscription on March 14 and closes on March 23 along with rights issue.

The rights issue of 27,30,000 equity shares to the existing shareholders to raise Rs 682.50 lakh has already opened for subscription.

Speaking to mediapersons here today, Company Chairman and Managing Director Jayesh C Patel said that Snack Food and Food Processing sector was growing at a pace of 20 to 30 per cent and had a huge potential. He said their plant located at Mehsana in north Gujarat had a locational advantage as Deesa, a well-known potato market, was closer to the plant.

The Snack Foods project will comprise of manufacturing potato chips in a range of five different flavours and shapes, which includes fried extruded, wet fried, filled extruded and unfilled extruded forms.

The project setup, under the state-of-the-art technology permits continuous blending of ingredients and facilitates making of a larger variety of products while reducing waste and saving of energy during production, he added.

UNI