Varun Industries has filed its Prospectus for its public issue of 90 lakh equity shares of Rs.10 each at a premium of Rs.50 per share (total issue price Rs.60) with SEBI on 03-07-07. Lead manager to the issue is IDBI Capital Market and shares would be listing on BSE and NSE.
The company is the largest exporter of stainless steel kitchenware and houseware and for FY 07 had consolidated topline of Rs.946.65 crores, PBT of Rs.32.28 crores, PAT of Rs.21.85 crores resulting in an EPS of Rs.16.66.on equity of Rs.13.11 crores. Post issue equity would be Rs.22.11 crores. The company has estimated its fund requirement of Rs.55.24 crores mainly for working capital of Rs.40.74 crores, Rs.10 crores for brand building and launching in domestic market and Rs.4.50 crore for public issue expenses. The present manufacturing facilities, which are equipped with state-of-the-art equipment with backup sophisticated manufacturing and warehousing facilities are located at Vasai, near Mumbai and Jodhpur.
The company also has Wind Turbine Generators at Jaisalmer where an investment of Rs.23.86 crore has been made by the company and which are all in operations with Power Purchase Agreements having signed with state electricity utility companies. The company is also planning to setup a 60 MW Hydro Electric Power generation project in Himachal Pradesh. The plans are also on the drawing board to acquire iron-ore mines in Bellary, Karnataka, for which the company has initiated effective steps. Since these projects are on the drawing board stage, the company has not crystallized its fund requirements and no definite details and plans of the project were given.
The company is exporting its products under `Varun' brand, which are well accepted and recognized in the overseas market.