Kaveri Seed Company Ltd's initial public offering of 40 lakh shares opens on September 6. Price band of the 100 per cent book build issue is Rs 150-170 per share. At the lower band, it will raise Rs 60 crore and Rs 68 crore at the cap price. The issue closes on September 11.
The net issue to the public is 38 lakh shares, and will constitute 29.20 per cent of the fully diluted post issue paid-up capital.
Kaveri Seed is in the business of research, production, processing and marketing of high quality hybrid seeds for crops like corn, sunflower, cotton, pearlmillet, paddy, grain and sorghum.
The company plans to use the IPO proceeds to acquire farmland for research & development near Hyderabad, Alwar and Ahmedabad; set up marketing offices and godowns in Delhi, Lucknow, Jaipur, Ahmedabad, and Aurangabad; corn cobdrying plants in Andhra Pradesh and Karnataka; biotechnology lab near Hyderabad; upgradation of existing seed processing plants at Kandalkoi, Gundla, Pochampally, Gatla, Narsingapur and Bellary; and processing plant near Hyderabad.
Kaveri Seed's net profit rose to Rs 2.93 crore in 2005-06 (Apr-Mar) from Rs 13.41 lakh in 2002-03. Total income has risen to Rs 49.72 lakh from Rs 23.64 lakh.
Book running lead managers to the issue are Anand Rathi Securities, Sobhagya Capital Options and SREI Capital Markets.
The net issue to the public is 38 lakh shares, and will constitute 29.20 per cent of the fully diluted post issue paid-up capital.
Kaveri Seed is in the business of research, production, processing and marketing of high quality hybrid seeds for crops like corn, sunflower, cotton, pearlmillet, paddy, grain and sorghum.
The company plans to use the IPO proceeds to acquire farmland for research & development near Hyderabad, Alwar and Ahmedabad; set up marketing offices and godowns in Delhi, Lucknow, Jaipur, Ahmedabad, and Aurangabad; corn cobdrying plants in Andhra Pradesh and Karnataka; biotechnology lab near Hyderabad; upgradation of existing seed processing plants at Kandalkoi, Gundla, Pochampally, Gatla, Narsingapur and Bellary; and processing plant near Hyderabad.
Kaveri Seed's net profit rose to Rs 2.93 crore in 2005-06 (Apr-Mar) from Rs 13.41 lakh in 2002-03. Total income has risen to Rs 49.72 lakh from Rs 23.64 lakh.
Book running lead managers to the issue are Anand Rathi Securities, Sobhagya Capital Options and SREI Capital Markets.
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