The initial public offer (IPO) of Vishwaraj Sugar Industries received bids for 88.17 lakh shares today, 3 October 2019, as against 1 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 17:30 IST. The issue was subscribed 0.88 times.

The IPO opened for bidding on Monday, 30 September 2019 and it will close on Friday, 4 October 2019. The price band for the issue has been fixed at Rs 55 to Rs 60 per share. The minimum order quantity is for 240 equity shares and in multiples thereof.

Vishwaraj Sugar Industries is an integrated sugar and other allied products manufacturing company operating from Belgaum district in Karnataka. It operates a single location sugar unit having licensed crushing capacity of 11,000 tons of cane per day (TCD). The company also manufactures other allied products like rectified spirits, extra-neutral spirits, indian made liquor, vinegar, compost, carbon dioxide (CO2), etc. and are further engaged in the generation of power for captive consumption as well as external sale. Its business can hence be broken up into five main segments namely sugar, co-generation, distillery, Indian made liquor (IML) and vinegar.

In the last financial year, the company produced 32,170 tonnes of sugar and manufactured approximately 1,23,060 boxes of IML, 1,07,79 KL of industrial vinegar, 3156.59 KL of rectified spirit and 969.47 KL of extra-neutral spirit.

The IPO consists of fresh issue of up to 30 lakh shares and offer for sale of up to 70 lakh shares. The objects of the net fresh issue is to raise funds for funding working capital requirement (Rs 15.70 crore), and general corporate purpose.

On a consolidated basis, Vishwaraj Sugar Industries reported a net loss of Rs 17.62 crore on net sales of Rs 286.21 crore in the financial year ended on 31 March 2019.