Indian made foreign liquor manufacturer Ravi Kumar Distilleries today said it will enter the capital market with its initial public offer (IPO) of 1.15 crore equity shares on December 8.
The price band of the issue has been fixed at Rs 56-64 per equity share, Ravi Kumar Distilleries said in a statement.
At the lower end of the price band the company would raise Rs 64.4 crore from the IPO, while at the upper end it would mop up Rs 73.6 crore.
The IPO will be through a 100 per cent book building process, it added.
The Chennai-based firm plans to utilise the proceeds of the issue towards expansion in unit by increase in existing capacity and installation of Re-distillation plant. Besides, it will also partly finance its marketing and corporate branding expenses through the fund.
Comfort Securities is the sole book running lead managers to the issue.
Ravi Kumar Distilleries IPO Price Band
Puducherry-based liquor-maker, Ravi Kumar Distilleries (RKDL), plans to raise Rs 74 crore through its Initial Public Offer (IPO) and has fixed the price-band at between Rs 56-64 per share for the issue.
The issue is scheduled to hit the market on December 8 and close on December 10.
“We plan to raise funds for expanding our existing facilities, to set up a redistillation plant, to part-finance the marketing and corporate branding expenses and for incremental working capital requirements,” RKDL’s Director, Badrinath Gandhi, told reporters here today.
The company, which is engaged in the business of manufacturing Indian Made Foreign Liquor (IMFL), operates in all segments including whisky, brandy, rum, gin and vodka, he said.
“The IMFL segment is a 125 million cases industry that is worth USD two billion. The per capita consumption of liquor in India is low at about 0.82 litres per annum as compared to the global average of 4.36 litres per annum, indicating a potential growth in the industry,” Gandhi said.
The growth of the domestic alcohol industry was being driven by favourable demographics, rising disposable income and changing social habits leading to a shift from the unbranded segment towards the branded segment (IMFL).
RKDL , which has a strong presence in Puducherry, plans to expand its business in Kerala, Andhra Pradesh and Karnataka, Gandhi said.
“The total IMFL market in the southern states of India is around nine crore cases. We are eyeing a three to four per cent share in this market by the next fiscal (FY 11),” he said.
Currently, the company manufactures 14,25,000 cases per year.
“By 2011-12, we want to expand the capacity to 36 lakh cases per annum,” he added.
Ravi Kumar Distilleries IPO Allotment Status
Comfort Securities is the sole book running lead managers to the issue. Karvy is the registrar of the isssue. Please check allotment status at below given link..
Ravi Kumar Distilleries IPO Listing Date
Open : Dec 08, 2010
Close : Dec 10, 2010
Allotment : Dec 20, 2010
Refund : Dec 21, 2010
Listing : Dec 23 – 25, 2010 (Expected)