Raj Oil Mills initial public offer (IPO), which opened for subscription on 20 July 2009 continued to see dull response for the third day today, 22 July 2009 as of 16:00 IST. The company received bids for 9.32 lakh shares as compared with 95 lakh shares on offer.

No bids were put in from the qualified institutional buyers and foreign institutional investors. The portion reserved for retail individual investors was subscribed 0.02 times

The company plans to sell equity shares of Rs 10 each in a price band of Rs 100 to Rs 120 per equity share through a public offer which will remain open till 23 July 2009. The issue size will be Rs 95 crore at the lower end of the price band and Rs 114 crore at the upper end of the price band. The issue would constitute 26.38% of the fully diluted post-issue paid-up capital of the company.

Raj Oil Mills plans to use issue proceeds to set up various facilities at Manor, Thane district, Maharashtra. These would include a refinery of 200 tone per day (tpd), which can process Sunflower, Soyabean, Groundnut, Palm, Cotton Seed oils; a crushing unit of 200 tpd for Groundnut and Copra; a Palm Fractionation unit of 100 tpd; and a Vanaspati Ghee unit of 50 tpd, a Ayurvedic and Cosmetic unit of 5 tpd and In-house Blow Moulding Plant for PET Bottles.

The proposed issue will also fund setting up of crushing unit of 200 tpd for sesame and mustard at Bagru, Jaipur district, Rajasthan; for brand promotion, expansion of Marketing & Distribution network and for setting up of Research and Development facilities. The margin money for working capital requirement and issue expenses will also be met out of issue proceeds.

The equity shares of the company are proposed to be listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE).

Mumbai-based Raj Oil Mills is a branded player in the edible oil business. It is engaged in processing and marketing of vegetable oils. It markets products under the following brands: Cocoraj (Coconut Oil), Cocoraj Cool (Ayurvedic Oil), Guinea Groundnut Oil (Double Filtered Oil), Guinea Lite Groundnut Oil (Refined Oil), Guinea Lite Sunflower Oil (Refined Oil), Guinea Lite Cottonseed Oil (Refined Oil), Guinea Lite Soyabean Oil (Refined Oil), Tilraj Til Oil, Mustraj Mustard Oil and Cocoraj Jasmine.