Globus Spirits IPO opens on Aug 31,2009
Globus Spirits IPO opens on Aug 31, to raise Rs 75 cr
Globus Spirits, a Delhi-based alcohol beverage company, is entering the capital market with an initial public offering (IPO) of Rs 75 crore worth equity shares of Rupees 10 each through 100 per cent book building process. It was scheduled to open its IPO with a price band of Rs 135-148 a share, between February 19-22,in 2008 and planned to raise Rs 68 crore.The company had withdrawn its IPO due to unfavorable market conditions.
Now, its issue price is fixed between Rs 90 to Rs 100 per equity share of Rs 10 each. It will open for subscription from Monday, August 31, 2009 and will close on September 2, 2009. The Issue will constitute 37.96 per cent of the post issue paid up capital of the company.Globus Spirits has shown good growth in the last 3 years and the company has grown by 30% CAGR.
Globus Spirits is amongst the leading players in the Alcohol industry in North India. Since its inception in 1992, it is in the business of manufacturing, sales and marketing of Indian Made Foreign Liquor (IMFL), Industrial Alcohol and Country Liquor.
Speaking to Media persons, Globus Spirits Managing Director Ajay K Swarup said, ”The company proposes to modernize and expand its production facilities at Behror, Rajasthan and Samalkha, Haryana. Globus Spirits Limited also plans to develop and acquire Indian Made Foreign Liquor brands; and revamp its bottling and storage capacities. With the installation of High-Pressure Boilers and Back Pressure Turbines, Globus Spirits Limited would use Biogas and Biomass as fuel and be able to implement Green House Gas Abatement program at both the facilities. The company will also install a Multi-Pressure Distillation Plant to produce high quality Extra Neutral Alcohol (ENA) of 35,000 liters per day from both Molasses and Grain at its Behror Unit in Rajasthan as well as produce ENA from Grain at Samalkha Unit in Haryana enhancing the total installed capacity to 4,98,00,000 BL per annum from 2,88,00,000 BL per annum. The total project cost would be around Rs 90 crore.” With two distilleries located in Behror, Rajasthan and Samalkha, Haryana, the Company is able to produce good quality alcohol. The combined licensed and installed capacity of these units is at 2,88,00,000 BL per annum. Globus Spirits is in the process of expanding its cumulative capacity to 4,98,00,000 BL per annum. Globus Spirits Limited intends to set up a biomass and biogas based fuel to meet the additional requirements of steam and power. The boiler will primarily use biogas (which will be generated at no extra cost while treating the wastewater process at bio-methanation plant), and the balance fuel will be Biomass, he added”.
Objectives of the issue
Installation of multi-pressure distillation plants.
Expansion of spirit-based starch liquefaction unit.
Installation of high-pressure boiler.
Brand development for marketing IMFL brands.
Revamping of existing storage/bottling capacity.
IPO of Globus Spirits would be listed at the BSE and NSE stock Echanges.
