Raj Oil Mills, engaged in the business of crushing and oil filtration, has filed its DRHP on 13th June, 2008, to enter the capital market with a public issue of 1.10 crore equity shares of Rs 10 each at a price to be decided through the 100% book building process at a later stage.
The issue would constitute 30.55% 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 Karvy Investor Services.
The object of the issue is for setting up facilities at Manor in Thane District which consists of various oil crushing and filtration-related units and a blow moulding plant for pet bottles; for setting up crushing unit of 200 tpd for sesame and mustard at Jaipur; to provide for professional and consultancy fees; to provide for miscellaneous and and other assets; to provide for contingencies and margin money for working capital requirements; for brand promotion and expansion of marketing and distribution network and for R&D facilities..
The company intends to use the proceeds from the issue to part finance the above-mentioned project cost. It will deployRs 49.04 crores for setting up the facilities at Manor; Rs 25.69 crores for setting up of a crushing unit of 200 tpd for sesame and mustard at Jaipur; Rs 3.29 crores for professional and consultancy fees; Rs 4.33 crores for R&D and provision for contingencies and miscellaneous & other assets and Rs 23.67 crores for brand promotion and working capital requirements.
For the year ended December 31, 2007, the company posted on a consolidated basis total income of Rs 239.92 crores and profit after tax of Rs 18.15 crores as compared to an income of Rs 122.84 crores and profit after tax of Rs 6.81 crores for the year ended December 31, 2006.
Raj Oil Mills, incorporated in 2001 has a capacity to manufacture 5,000 tpa of crushing and 30,000 tpa of oil filtration. Considering the growth prospects in this segment and to consolidate its position in the market places, the company intends to diversify into manufacture of other products and also to forward integrate by setting up a facility for refining. On completion of this project, the company will be in a position to offer a wide product range of edible oils and market its products on a pan-India basis and reduce its dependence on third party oil seeds crushers.
The company markets its brand under three umbrella brands viz Cocoraj, Guinea and Raj which are in existence for over 5 decades.