Buoyed by growing revenue, Hatsun Agro Product is set to call off its proposed rights issue.
Last year, the company had announced plans to raise Rs 50 crore through a rights issue. The company had then said the money will be needed to invest in captive power facility to secure its power needs, expand its Ibaco chain of exclusive ice cream parlours and to bring down its debt. However, Hatsun Agro has managed to go ahead with its plans through internal accruals supported by growing revenues, said R.G. Chandramogan, Chairman and Managing Director, Hatsun Agro, the largest private sector dairy company.
Interim dividend
According to information provided to the BSE, on January 31, the company board will formally decide on this along with the quarterly results and consider a second interim dividend.
Hatsun Agro needs over five crore units of electricity annually. It has entered into an alliance with PPS Enviro Power, a wind mill generator, for electricity supply this year. This will give it reliable power at a comparatively reasonable cost.
Also, with a slew of power projects set to go on stream in the State, reports are optimistic that the power shortage in Tamil Nadu will be addressed by June this year, he said.
Other expansions including the Ibaco chain growth are on schedule, he said.
The company had recently said that it has over 80 Ibaco outlets and is opening 10 outlets every month in different parts of South India. By February 2013 it will have over 115 outlets.