Sita Shree Food Products IPO was undersubscribed on the first day of its issue. The IPO received bids for 20,400 shares as against 1.16 crore shares on offer. (As at 16:00 IST)The price band is fixed between Rs 27 to Rs 30 per share and the issue will close on 14 March 2008.
The issue has been graded by CARE as IPO grade 2. The equity shares are proposed to be listed on BSE and NSE.
The company proposes to invest the net proceeds of the issue to part finance its Rs 48.12 crore expansion. The plan include setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tons per day (tpd) capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd.
The proposed project will be set up at Badiakima, Indore, Madhya Pradesh just 8 km away from existing location. The company has received sanction from Union Bank of India for term loan of Rs 10 crore. The promoters have already brought in their contribution of Rs 6.24 crore.
Sita Shree's existing plant is located at Indore on 2.5 acres of land. Its product portfolio consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold or sold to other brands. Its turnover is dominated by bulk packing products segment.
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