NCML Industries is planning Initial Public Offering (IPO) and the issue will open for subscription on December 29, 2014.
The issue will close on January 02, 2015.The price band has been fixed at Rs100 to Rs120.
The equity shares are proposed to be listed on BSE and NSE, says report.
The objects of the offer are to carry out the sale of 60,00,000 equity shares by the selling shareholders.
Corporate Strategic Allianz Limited is the book running lead manager and Satellite Corporate Services Private Limited is registrar to the issue.
The offer will constitute 25.48% of the post offer paid up equity share capital of the Company. The Corporate Strategic Allianz Ltd is the BRLM for the Issue and Satellite Corporate Services Pvt Ltd is the Registrar. The equity shares are proposed to be listed on the BSE and NSE.
The Company is into the business of importing, manufacturing and marketing of edible oil in India with international presence, dealing in various edible oils such as Soya bean oil, Cottonseed oil, Palm oil (Palmolein), Mustard oil, Rapeseed Oil etc. The promoters have been associated with the oil industry for more than five decades, which has enabled the Company to successfully implement its growth strategies. The total revenue of NCML Industries has gone up from Rs 1,047 crore for the year ended 31st March 2011 to Rs 2,767 crore for the year ended on 31st March 2014 and the restated profits after tax has increased during the same period from Rs 13.80 crore to Rs 55.22 crore. The total revenue for the first quarter of the current fiscal ending 30th June 2014 was Rs 881.69 crore and restated profit after tax at Rs 6.64 crore
After establishing the strong foothold in the trading and imports and with the in-depth understanding of domestic and foreign oil market, the Company started setting up its own Refinery Unit with an installed capacity of 350 TPD at Khasra in Pilakhua District of Hapur in U.P. and the same got operational during the last quarter of FY 2011-12. Due to commencement of commercial operations of the Refinery Unit, the brands are used by refinery. The Company has improved the numbers of branded sales such as ‘MAANIK’ for Refined Soya-bean & Refined Cottonseed, ‘MAANIK Gold’ for Refined Soya-bean (Premium Quality), ‘SHAN’ for Refined Palm Oil, ‘MOTI’ for Mustard Pakki Dhani, and ‘PEARL’ for Mustard Kacchi Dhani
During FY 2013-14, the company has gone for expansion and thereby increased its installed capacity by 250 TPD, thus making a total installed capacity of the Refinery Unit to 600 TPD. The additional capacity of 250 TPD got operational during the last week of the 3rd Quarter of FY 2013-14.
The extensive marketing and distribution network of the Company helps to reach the customers in 7 states in India. The Company as on June 30, 2014 has 2 distributors in Himachal Pradesh, 30 distributors in Punjab region, 30 distributors in Haryana and 2 distributors in Jammu & Kashmir. The Company handles the product marketing and distribution through a channel of distributors, C&F Agents and Retailers.
The business strategy of the Company include enhancement of capacity and value addition. In order to reduce the cost of production of the entire value chain and to enhance sale margins, the company intends to go for value addition. In value addition the company has decided to venture into interesterified fats for edible purpose and oleo-chemical division for production of oleo-chemicals as the high end niche product line for industrial applications.
NCML Industries is having established retail network in the UP and the adjacent areas of Northern Region. Edible oils such as Soya Oil and Palm oil are such that have pan India demand. The company plans to foray into newer markets and increase customer base. The Company has plans to widen the operations to the states of Punjab, Haryana, Himachal Pradesh, States of J&K and Madhya Pradesh etc. With increased penetration levels the company will be able to increase its market share along with volumes. The company is not only scouting for shelf place but is also planning to set up manufacturing facilities in strategic location to increase its presence in new markets. The move is in line with the company‘s objective to be cost effective while adhering to quality standards and near to consumption markets.