Simbhaoli Sugar Rights Issue
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New Delhi September 20, 2005. The Simbhaoli Sugar Mills Limited , the largest integrated sugar refinery in India, has come out with its Rights issue. The issue opened On September 9, 2005 and will close on October 8, 2005.
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According to Mr Sanjay Tapriya, Director (Finance) and Company Secretary, 87,84,622 Equity Shares of Rs. 10/- each shall be offered for cash at a premium of Rs.50/- (Issue Price of Rs.60/-) per Equity Share on rights basis to the existing Equity Shareholders of the Company in the ratio of 4 (Four) Equity Shares for every 5 (Five) Equity Shares (i.e.4:5) held as on 26/08/2005 (Record Date) aggregating Rs. 5270.77 Lacs.
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The funds so raised will be deployed to part finance the capital expansion plan already underway to expand Company’s existing sugar production capacities at Simbhaoli (Western UP) to 9500 TCD from current level of 7500 TCD; and, to service its long-term working capital needs. With this expansion the company intends to operate its raw-to-refined process for additional 60 days beyond the sugar season and generate additional co-generated power, too. This effort will entail the usage of its sugar plant for 240 days in a year against the conventional 180-day sugar production cycle in northern India.
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Also, The Simbhaoli Distillery unit has completed its capacity expansion to 90,000 ltrs/day of alcohol with 60,000 ltrs/day of Ethanol capacity. It has started supplying Ethanol for 5% Ethanol-blending programme with petrol to all petroleum oil companies in northern India |
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In addition, the Company is expanding the capacity of its Chilwaria (Eastern UP) sugar unit with Sugar Development Fund (SDF) assistance at a capital expenditure of Rs. Thirty crores ; enhancing the cane crushing capacity to 6000 TCD from 3800 TCD.It has also announced setting up of a new sugar plant in village Brijnathpur in Ghaziabad District (UP) ; the funding plan of which will be disclosed shortly. The additional capacity at Chilwaria unit as well as the proposed plant will start sugar production in October 2006.
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