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KS Oils is planning to raise fresh capital of about Rs. 400 crore. Sanjay Agarwal, MD & CEO, KS Oils said that the money
would be raised through various channels like private equity, GDR, FCCB and promoters'. bringing in capital.
He added that this capital would be used to enhance their capacity. "Total oil mill capacity after this will be 5,254 metric
tonnes - solvent would be 3,900 metric tonnes and the refinery would be 1,400 metric tonnes," he explained. He also said
that they are targeting a 20% share in the mustard oil market.
Excerpts of CNBC-TV18's exclusive interview with Sanjay Agarwal:
Q: Rs. 400 crore, give us a break up of what instruments are you using to raise this
amount of money?
A: This is by way of private equity of Rs. 90 crore; bearing is coming in the private equity, Rs. 90
crore by way of GDR, Rs. 120 crore is by way of FCCB and promoters'. are also paying Rs. 100
crore. This is the break up of Rs. 400 crore.
Q: So what amount of dilution is it resulting into?
A: This is a 15% dilution, but the promoter is also bringing Rs. 100 crore. So promoter stake will
remain in the company after the post-issue.
Q: What would you utilise this amount of money for?
A: This money will be utilised for enhancement of capacity - the oil mills capacity by 4,000 metric
tonnes, our solvent extraction capacity by 3,000 metric tonnes and the refinery capacity by 1,000
metric tonnes. So total oil mill capacity after that will be 5,254 metric tonnes, solvent would be
3,900 metric tonnes and the refinery would be 1,400 metric tonnes.
Q: Post this capacity expansion, what sort of topline addition do you think it will
result into?
A: We are looking for a 20% market share in the mustard oil segment. Presently, we have 4 to 5%
share. We are expecting a 20% market share after this expansion.
Q: There were rumors. about you scouting for acquisitions in the market, any more
developments in that front?
A: No, not right now.
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