The initial public offering (IPO) of agri-products producer, Sita Shree Food Products received 80% subscription before 4 hours to close. The company is offering shares worth Rs 315 million at a price band of Rs 27 to Rs 30. The issue is open till Mar. 14, 2008.
The issue has been graded by CARE as `IPO grade 2` indicating below average fundamentals to the issue. Keynote Corporate Services is the book running lead manager to the issue and Ankit Consultancy is the registrar to the issue. The equity shares are proposed to be listed on BSE and NSE.
The company will utilize the IPO proceeds to part finance its Rs 481.2 million expansion plan. The plan includes setting up of a solvent extraction plant having 500 TPD capacity, a oil refinery for solvent extraction plant having 100 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.
Sita Shree Food Products started its business in the year 1997 and entered into joint venture agreement with Godrej Pilsburry for manufacturing of Atta- whole wheat flour through the company`s plant. The company terminated the said agreement in 2002 and started manufacturing under its own name & brand. In the past, the company has also catered to the requirement of multinational companies like Uniliver as a production hub for manufacturing atta for their brand `Annapurna`.