Varun Ind Ltd IPO opens on Oct 25, Issue price fixed at Rs 60

Mumbai, Oct 16 (UNI) Varun Industries Ltd is entering the capital market on October 25 with a public issue of 90,00,000 equity shares of face value of Rs ten each.

The Issue price has been fixed at Rs 60 per quity share, which is six times the face value, aggregating Rs 54 crore. The issue closes on October 31.

The Company's CMC Mr Kiran N Mehta told mediapersons here today that the issue proceeds of Rs 54 crore will be utilised by it mainly for meeting the expenditure required for launching of its Stainless Steel Kitchenware and Houseware items as well as brand building in the domestic market and meeting the margin money requirement for enhanced working capital and towards issue expenses.

The Company has also set up a Stainless Steel Sheet Re-rolling Mill at Jodhpur, Rajasthan, as a process of backward integration at a cost of around Rs 29 crore. The product in this unit will be used as main raw material at the Vasai Plant, near Mumbai. The Company has started trial runs at the Jodhpur unit and the commercial production was expected to commence soon, he said.

''As a process of backward integration and to increase our profit margin, we have develped an in-house manufacturing facility to manufacture various stainless steel kitchenware and houseware items and a warehousing facility at Vasai. The total cost of this project was at around Rs 55 crore. Commercial production from this facility has already commenced last month,'' he added.

UNI