Jiji Industries plans IPO for expansion

Jiji Industries has filed draft red herring prospectus with the market regulator SEBI for a public issue of 90 lakh equity shares of Rs 10 each.

The company is engaged in the business of manufacturing of aluminum extruded sections & profiles, ingots and other related products.

Jiji is proposing to expand its manufacturing capacity by 6,000MT p.a from its existing capacity of 2,100MT p.a. Expansion would comprise of a proposed expansion of 4,500MT p.a. at Ghatabillod and 1,500MT p.a. at special economic zone, Pithampur.

Company plans to raise money through IPO for expansion of manufacturing capacities at existing manufacturing units at Ghatabillod (at cost of Rs 19.12 crore); setting up new manufacturing facility at special economic zone, Pithampur, Madhya Pradesh (with cost of Rs 9.78 crore); and for long term working capital (of Rs 4.35 crore).

For the year ended March 31, 2011, the company reported a net profit of Rs 3.03 crore on total income of Rs 86.04 crore.

Hem Securities Limited is the book running lead manager to the issue.