EkCrore.net :: Ravi Kumar Distilleries IPO

April 11, 2010
Puducherry-based liquor maker Ravi Kumar Distilleries plans to tap the capital market for its expansion plans and working capital needs. It has submitted the draft Red Herring Prospectus (DRHP) with SEBI for initial public offering (IPO) of 1.15 crore equity shares.

Is in the business of manufacturing of Indian Made Foreign Liquor (IMFL) under its own brand portfolio as well as partnership arrangements with other companies. The IMFL consists of whiskey, brandy, rum, gin and vodka.

At present, the installed capacity of 14,25,000 cases per year and 26,000 cases of Special Bonded Warehouse.

The issue constitutes 47.92% of the fully diluted post capital of the company.

RV Ravikumar, a promoter and Ravikumar Properties Inc. currently has 74.80% and 24.60% stake in the company, which was reduced to 38.96% and 12.81%, respectively.

amount of the issue will be used to expand the unit by increasing the existing capacity and installation of plant re-distillation (at a cost of Rs 11.22 crore) for the marketing and financing costs brand companies (cost of Rs 3 crore), partial incremental financing working capital requirements (cost of Rs 33.97 crore). The balance will be used for general business costs and expenses of the issue.

For the nine months ended December 31, 2009, the company reported profit after tax of Rs 1.42 crore on total income of Rs 31.62 crore. It owes a debt of Rs 27.09 crore in its books until the same period.

The book running lead manager of the matter is Comfort Private Securities Limited and Karvy Computershare Limited is the registrar.