Usher Agro Updates on expansion plans

The Board of Directors of Usher Agro Ltd approved the allotment of warrants on a preferential basis to promoters of the Company and strategic investors, subject to approval from the members. The resultant equity shares of the Company to be issued against such warrants would not exceed 40 lakh fully paid equity shares of the face value of Rs 10 each at a price as may be determined by the SEBI Disclosure of Investor protection guidelines. The relevant date fixed for this purpose is April 20, 2007.

The Company is pursuing growth opportunities in the existing business of food processing. The issue is to partly finance the expansion of its rice milling business by setting up additional capacities of 30 tonnes per hour / 2 lakh tones per annum (TPA) at Mathura. The Company presently has three rice processing facilities located in Mathura and Buxar with an aggregate capacity of 57,600 TPA.

The Company had completed an IPO (Initial Public Offering) in September 2006 with a public issue of 1,20,12,000 equity shares of Rs 10 each for cash at a premium of Rs 5 aggregating to Rs 18.02 crore This was for setting up wheat roller flour mill and cogeneration power plant along with modernization of rice milling plant at Mathura.

Mr. Vinod Kumar Chaturvedi Managing Director of the Company, said "Expansion of rice milling capacity shall further consolidate our position in the industry and shall add turnover of Rs 190 crore and profits of Rs 20 crore on optimum capacity utilization"

The expansion is expected to he completed in the year 2008.

Source : Equity Bulls

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