The Hindu : Business : Kovilpatti Mills to tap market

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Saturday, Nov 25, 2006
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Kovilpatti Mills to tap market

Corporate Reporter

To part finance Rs. 31 crore expansion programme

CHENNAI: Kovilpatti Lakshmi Roller Flour Mills (Kovilpatti Lakshmi), engaged in wheat flour milling, production of cotton yarn, sheet metal fabrication and generation of power through wind mills, is entering the capital market with a public issue of 26 lakh equity shares of Rs. 10 each at a premium of Rs. 45 per share aggregating Rs. 14.30 crore.

The issue will be open from November 27 to December 1, 2006.

Addressing presspersons here on Friday, Suresh Jagannathan, Managing Director of the company, said the company would utilise the net proceeds of the issue to part finance its Rs. 30.60 crore expansion plans.

The plans included investment in Coimbatore-based Eltex Super Castings and establishment of two windmills of 1.25 MW each.

Eltex, engaged in the manufacture of iron castings for the past three decades, was taken over by Kovilpatti Lakshmi and it was proposed to expand the operations of the company, Mr. Jagannathan said.

The company would have an installed capacity of 6.25 MW of power generation through windmills and the entire power generated would be consumed inhouse, resulting in a saving of up to Re.1 per unit compared to power procured directly from the Electricity Board.

The company has reported a turnover of Rs. 55.70 crore and a net profit of Rs. 1.89 crore in the six months ended September 30, 2006. It has a track record of uninterrupted dividend payment since 1993. The existing equity shares are traded at a price of Rs. 75 per share on BSE.

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