Fizel Jabir jabirfizel@yahoo.com
Sri Lankan dairy giant Lucky Lanka Milk Processing Company Ltd is poised to make huge strides in dairy circles with many innovations and expansions with an Initial Public Offering (IPO) of Rs 300 million opening on July 7, 2014.
Setting off Rs 200 million high cost borrowings, investing Rs 100 million on new projects and expansion of the existing production plant and the setting up of over 1,000 Gedarata Kiri milk bar outlets islandwide are the hallmarks of the Rs 300 million IPO said Chairman Lucky Lanka Milk Processing Lal Keerthi Gunawardhana said at the press conference held in Colombo on Wednesday.
Gunawardhana said his main task will be to increase liquid milk consumption in housholds and would further expedite the Gedarata Kiri project with initially setting up 50 outlets in Colombo. The next move will be to deliver milk to households, he said.
The IPO will consist of 38 million ordinary voting shares at Rs 6 and 24 million ordinary non-voting shares at Rs 3. The shares will be listed on the Diri Savi Board of the Colombo Stock Exchange. Corporate Advisory and Capital Market division of Merchant Bank of Sri Lanka will be Investment Bankers to the issue while and Bank of Ceylon will be the Bankers to the issue.
Out of the proceeds Rs 200 million will settle the high cost borrowings, which in turn is expected to boost the net profits immediately. Rs 75 million will fund the expansion of the existing production plant with new cold room complex with an ammonia refrigeration system, extension to the existing UHT milk processing building and new machinery including conveyer systems and pigging systems. Rs 25 million will be utilized for new projects such as Gedarata Kiri, Milk Bar Outlets and School Canteen.
The company's revenue shows a 15% consistent growth from 440 million to 890 million, said Hijas Suhair of Merchant Bank of Sri Lanka.
The revenue for 2014 marked Rs 896.5 million compared to Rs 841.8 million in 2013 with an asset base over Rs 750 million.
Lucky began in1991 as a domestic business with the excess milk of the household cows. Gunawardhana then at 20 started this business with the support of his family members. Today, it operates in Kamburupitiya with a factory capacity of 20,000 liters per day. At a national level enterprise with more than 5,000 farmers and seven milk extraction centers located in Bandarawela, Baddegama, Pannegamuwa, Wellawaya, Embilipitiya, Matara and Welimada.
www.dailynews.lk
Sri Lankan dairy giant Lucky Lanka Milk Processing Company Ltd is poised to make huge strides in dairy circles with many innovations and expansions with an Initial Public Offering (IPO) of Rs 300 million opening on July 7, 2014.
Setting off Rs 200 million high cost borrowings, investing Rs 100 million on new projects and expansion of the existing production plant and the setting up of over 1,000 Gedarata Kiri milk bar outlets islandwide are the hallmarks of the Rs 300 million IPO said Chairman Lucky Lanka Milk Processing Lal Keerthi Gunawardhana said at the press conference held in Colombo on Wednesday.
Gunawardhana said his main task will be to increase liquid milk consumption in housholds and would further expedite the Gedarata Kiri project with initially setting up 50 outlets in Colombo. The next move will be to deliver milk to households, he said.
The IPO will consist of 38 million ordinary voting shares at Rs 6 and 24 million ordinary non-voting shares at Rs 3. The shares will be listed on the Diri Savi Board of the Colombo Stock Exchange. Corporate Advisory and Capital Market division of Merchant Bank of Sri Lanka will be Investment Bankers to the issue while and Bank of Ceylon will be the Bankers to the issue.
Out of the proceeds Rs 200 million will settle the high cost borrowings, which in turn is expected to boost the net profits immediately. Rs 75 million will fund the expansion of the existing production plant with new cold room complex with an ammonia refrigeration system, extension to the existing UHT milk processing building and new machinery including conveyer systems and pigging systems. Rs 25 million will be utilized for new projects such as Gedarata Kiri, Milk Bar Outlets and School Canteen.
The company's revenue shows a 15% consistent growth from 440 million to 890 million, said Hijas Suhair of Merchant Bank of Sri Lanka.
The revenue for 2014 marked Rs 896.5 million compared to Rs 841.8 million in 2013 with an asset base over Rs 750 million.
Lucky began in1991 as a domestic business with the excess milk of the household cows. Gunawardhana then at 20 started this business with the support of his family members. Today, it operates in Kamburupitiya with a factory capacity of 20,000 liters per day. At a national level enterprise with more than 5,000 farmers and seven milk extraction centers located in Bandarawela, Baddegama, Pannegamuwa, Wellawaya, Embilipitiya, Matara and Welimada.
www.dailynews.lk
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