Varun industries to enter capital market

Chennai, Oct 22 (UNI) Varun Industries Limited, India's largest exporter of stainless steel kitchenware and houseware items, is entering the capital market to raise Rs 54 crore to promote its brand and meet margin money requirement.

Addressing a press conference here, Company Chairman and Managing Director Kiran Mehta said that while Rs 10 crore of the proceeds would be utilised for building the brand "Varun", Rs 45 crore would be used to meet margin money requirements.

He said the company proposed to set up specialised showrooms, targetting wholesale and semi wholesale dealers in the next three years as part of brand promotion.

Mr Mehta said the company had recently developed an in-house manufacturing facility to manufacture various stainless steel kitchenware and houseware items and a warehousing facility at Vasai, near Mumbai, at a cost of Rs 55 crore. Commercial production began last month, he added.

The company proposed to enter the capital market on October 25 with a public issue of 90 lakh equity shares of face value of Rs ten each. The issue price had been fixed at Rs 60 and the issue would close on October 31.

The company, mainly catering to exports, had an export income of Rs 740.03 crore out of the total income of Rs 760.78 crore during the last financial year.

UNI