Empee Distilleries IPO Subscribed 1.2 Times

An initial public offering (IPO) of Empee Distilleries has received mild respone till now. It has subscribed 1.2 times, according to data available on NSE website.

Issue received bids for 57.8 lakh shares against 48 lakh shares on offer and bids for 6.55 lakh shares at cut off price.

Qualified institutional investors have supported the issue till now. Their reserved portion was subscribed 2.1 times followed by weak response from HNIs and Retail.

The company has opened for subscription with a public issue of 48,00,000 shares of Rs 10 each priced Rs 350-400 per share The issue will close today.

The issue would constitute 25.26% of the post issue paid-up capital of the company.

It proposes to part-finance its expansion from the net proceeds. The company plans to set up 60 klpd grain based distillery and blending & bottling Indian-made-foreign-liquor plant with capacity of 0.07 lakh cases per month in Nellore, Andhra Pradesh. It plans to expand the existing distillery in Mevalorkuppam.

The company will also set up 7.5 MW biomass based power plant in Aranthangi, and develop 2 lakh square feet of residential space at Mevalorkuppam, in Tamil Nadu.

The company currently manufactures various IMFLs in Tamil Nadu and Kerala. It also has a wind mill energy plant in Coimbatore. The company owns 20.88 acres of land at Kanchipuram