The initial public offer of Aries Agro (AAL), a micronutrient and other nutritional products for plants and animals manufacturing company, has been seeing modest response, subscribed 7.62 times, till 5 pm, as per NSE website. The issue received bids for 3.42 crore shares as against 45 lakh shares on offer.
The company had come out with an IPO of 45,00,000 equity shares of Rs 10 each for cash at a price band of Rs 120-130 per share. The issue would constitute 34.61 per cent of the AAL's fully diluted post issue paid-up capital.
AAL manufactures a wide range of products spread across five main categories, viz. Plant multi-micro nutrients, Chelated micro-nutrients, Specialty soluble nutrients, Anti-bacterial products for agricultural use and nutritional products for animals. Micronutrients are a group of nutrients that are essential for plant growth. The company's existing manufacturing facilities are located at Bangalore, Mumbai, Hyderabad and Kolkata
As a part of its expansion plan, AAL mainly intends to set up new manufacturing units at Ahmedabad, Lucknow, Medak (Andhra Pradesh) and an additional unit in Maharashtra. AAL is embarking upon over a three-fold increase through this expansion, and would add 79,200 TPA to its existing manufacturing capacity of 21,600 TPA.
To increase its global reach, AAL proposes to acquire a stake in Golden Harvest Middle East (FZC), a company incorporated in UAE to make it a subsidiary company.
AAL would also create mobile shops through mobile vans for its products in order to reach the places where there is demand. Accordingly, the company is planning to buy around 100 such mobile vans at a cost of Rs 5.79 crore.
The total cost of proposed expansions would be Rs 47.54 crore.
The proposed issue will be lead managed by SREI Capital Markets Ltd and the Registrar to the issue will be Aarthi Consultants Pvt Ltd. The issue would be listed on BSE and NSE
Source: Moneycontrol.com
Wednesday, December 19, 2007
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