The objective behind raising the funds by the company is to build a capital base to meet the preliminary and pre-operating expenses. Keynote Corporate Services Limited is the book running lead manager to the issue and Indian Overseas Bank is the co-book running lead manager.
The company has a project to carry out production from state-of- the-art production unit situated at Kodaganallur Village, Tirunelveli district, Tamil Nadu with total installed production capacity of 90000 MTPA making it one of the largest single location plants in India. Phase-I of the project is complete & has started the commercial production from 1st April, 2010.
The company proposes to finance the entire plant & machinery required for the proposed Phase-II expansion from the proceeds of this issue. The objectives of the public issue are augmenting funds to purchase equipments for producing value added products, building long term working capital requirement, meeting preliminary & Pre Operative expenses, meeting the issue expenses.
The company incurred losses to the extent of Rs 8.49 lacs & Rs 8.78 lakhs for financial years 2009 & 2010 respectively.