Delhi-based Globus Spirits (GSL) has filed its DRHP with Sebi on 28th September, 2008 to enter the capital market with an IPO of 75 lakh equity shares of Rs 10 each at a price to be decided at a later stage through the book building process. The issue comprises of 50,000 equity shares to the employees of the company and net issue to the public of 74.50 lakh equity shares.
The issue will constitute 37.96% of the fully diluted post issue paid-up capital of the company.
The company proposes to list its shares on BSE and NSE and the BRLM to the issue is SREI Capital Markets.
The objects of the issue is for installation of a multi-pressure distillation plant to produce Extra Neutral Alcohol (ENA) of 35,000 lpd from both molasses and grain at Behror Unit in Rajasthan and another distillation plant to produce ENA of 35,000 lpd from Grain at Samalkha Unit in Haryana; Capacity expansion of spirit-based Starch Liquefaction from 60 KLPD to 75 KLPD, with modernization at Behror Unit; Installation of High-Pressure Boiler and Turbine and implementation of Green House Gas Abatement project at both the units; Brand development for marketing Indian Made Foreign Liquor (IMFL) brands in 10 more States/Union Territories; Acquisition of Canteen Stores Department registered IMFL brands and revamping of existing storage/bottling capacity at Samalkha Unit, and modernization of Bottling Section at Behror Unit.
The company proposes to utilize the proceeds from the issue to part finance the estimated project cost of Rs 89.28 crores as mentioned above. The company will deploy Rs 6.76 crores to set up the distillation plant to produce ENA of 35,000 lpd at Behror unit from molasses and grains; Rs 26.65 crores for another distillery for the manufacture of ENA from grains at Samalkha with a capacity of 35,000 lpd; Rs 3.33 crores for capacity expansion of spirit-based starch liquefaction at Behror from 60 klpd to 75 klpd; Rs 66 lakh for modification of fermentation works in existing grain-based distillery at Behror unit; Rs 9.18 crores for installation of furnace boilers at both the units; Rs 4.50 crores for installing 2000 kw turbines at the two units, Rs15 lakh for setting up a Green House Gases abatement project at the units; Rs 28.51 crores for brand development for marketing of IMFL; Rs 3 crores for acquisition of Canteen Stores Department reigistered IMFL brands; Rs 6.54 crores in IMFL bottling sectin at both the units and other miscellaneous civil structures.
GSL has now undertaken expansion and modernization of these plants.
The company has availed a term loan of Rs 12 crores from SBI to part finance the project besides, internal accruals of Rs 14.28 crores
Globus Spirits is engaged in the business of manufacture, marketing and sale of
industrial alcohol comprising rectified spirit and ENA, country liquor, and
IMFL. GSL has a brand portfolio of its own in the Country Liquor segment such as Rana, Rajasthan No.1, Ghoomar, Samalkha No.1, Samalkha Ki Saunfi etc; and in IMFL segment such as White Lace Gin and Vodka, Samurai Whisky and Hannibal Legendry Rum etc. It also caters to reputed Indian brands in the IMFL segment such as Officer's Choice Whiskies, No.1 Brandy and XXX Rum. The company has already launched its own IMFL brands in Haryana, Rajasthan, Chandigarh, Uttar Pradesh, Kerala, Andhra Pradesh and Karnataka. It proposes to launch the brands further in two states/Union territory in North India and one state/Union Territory in South India.
The company reported total income of Rs 161.57 crores and a net profit of Rs12.64 crores for the year ended 31.3.2008 as compared with total income of Rs113.72 crores and net profit of Rs 8.66 crores for the previous year.