Indian IPO

All details about Hot Indian Primary Market.

Tuesday, August 29, 2006

Usher Agro IPO opens on Sep 5; fixes issue price at Rs 15

Usher Agro, an agri-processing company, is entering the capital market with a public issue of 1,20,12,000 equity shares of Rs 10 each for cash at a premium of Rs 5 aggregating to Rs 18.02 crore (Rs 180.2 million), as per press release.

The fixed price issue opens for subscription on September 5, 2006 and closes on September 11, 2006.

The total offer includes a promoters' contribution to the extent of 32 lakh equity shares at the same price of Rs 15 per share aggregating to Rs 4.80 crore (Rs 48 million). Thus the net offer to public stands reduced to 88.12 lakh equity shares.

Interestingly, the lead managers to the issue IDBI Capital Market Services is offering an attractive safety net for investors picking a stake in this offer. Under the scheme, which is offered exclusively to resident individual allottees, the safety net will be limited upto a maximum of 800 equity shares. The scheme will be open for a period of six months from the date of allotment of equity shares in the proposed issue.

The company is raising the funds through this fixed price public issue to fund its wheat roller flourmill with the capacity 250 MT per day at Mathura, which is expected to start its commercial production shortly. The company also proposes to modernize its existing rice mill plant at Mathura and set up new 1 MW Co-generation power plant based on rice husk (a by product of company's rice mill) at Mathura for captive consumption.

The company is currently operating two rice mills situated at Mathura in U.P. and Buxar in Bihar producing raw white rice and parboiled rice of different grades of both basmati and non-basmati rice. The Mathura (U.P.) Plant is based on conventional technology, has an installed capacity of 10800 TPA and at Buxar, which is a fully automatic rice plant, has an installed capacity of 46800 TPA. The company produces raw white rice, parboiled rice and steam rice.

In last 10 years of successful operations the sales of the company have grown from Rs 1.01 crore (Rs 10.1 million) in first financial year i.e. 1996-97 to Rs 35.31crore (Rs 353.1 million) for the period of eleven months ending May 31, 2006. The profit has also increased approximately. 50 time during the same period, from Rs 3.01 lakh in 1996-97 to Rs 1.45 crore (Rs 14.5 million) in the year 2005-06 (11 month period).

Vinod Kumar Chaturvedi, managing director of the company, said "we expect growth in both rice and wheat products. Growth in packaged Atta industry is driven by four factors viz. rise in disposable income, value of time, demand for improved quality and hygiene and economic / non economy of small scale Chakkis."

The lead managers to the issue are IDBI Capital Market Services.


Post a Comment

<< Home