The board of Empee Sugars and Chemicals on Tuesday cleared plans to raise Rs 350 crore via a GDR issue. The company has call shareholders meeting to seek their approval.
?We have not decided yet on the time of the issue. It could be early next year,? the company?s chairman and managing director (CMD) MP Purushottaman told FE.
The money will be used to part-finance its upcoming distillery unit in Tamil Nadu and retire high-cost debt.
The company is setting up a 5,000 TCD integrated sugar complex, a 50 mw co-generation power plant and a 100 kilo litre per day (KLD) distillery unit at Ambasamudram in Tirunelveli district of Tamil Nadu at a cost of Rs 550-650 crore.
?We have commenced the commercial production of sugar and cogen power recently and are in the process of setting up of a 100 KLD distillery unit in the complex,? Purushottaman said. On commencement of sugar production at the new facility, the total capacity would touch 10,000 TCD and the cogeneration capacity would be around 80 MW.
?We are supplying ethanol to oil marketing and pharmafirms and will increase the supply once the new unit goes on stream. We are in talks with the oil marketing as well as pharma cos for increasing uptake,? the CMD said.