The core promoter, chairperson and managing director of Rajshree Sugars & Chemicals Limited (RSCL) Rajshree Pathy will pick up close to 3% on the expanded capital of the company, taking her stake in the company close to 35%. Rajshree has been continuously increasing stake in the company over the months, sources close to the development said.
Rajshree is expected to subscribe to a fresh issuance of 11,00,000 shares/warrants on a preferential basis for a consideration of around Rs 62 crore. The board which met recently approved the fresh allotment of shares/warrants to the core promoter. The company will utilise the fresh funds towards working capital requirements and other expenditures, the sources added.
According to the sources, Rajshree has been continuously increasing her stake from 26% in March 2007 to 28% as of March 2008 and then to 31.5% as of March 2009. During the 2008 fiscal, the company had reported a better than expected net profit of Rs 22 crore in the 2009 fiscal due to surge in demand and better prices. The company hopes that the current fiscal will be much better than that of last two years, sources said.
In order to capitalise on the better market conditions on both demand and value, the company will set up a new plant at Gingee near Villupuram in Tamil Nadu with 3,500 tcd (tonne crushed per day) capacity, including a cogeneration plant of 20.5 mw with an estimated capital expenditure of Rs 225 crore, the sources added. The plant is expected to go on stream by January next year. In Gingee, the company already has a plant with a capacity of 3,500 tcd.
The company has four plants (three in Tamil Nadu and one in Andhra Pradesh) with a total production capacity of 13,000 tcd and a cogen capacity of 55 mw. The company is also generating huge revenue out of selling majority of the cogen capacity to the state grid, the sources added.