Uttam Sugar Mills has extended its Rs 27.21 crore rights issue till October 19.

The rights issue, which opened on September 20, was to close on October 4.

“This is to inform to the shareholders of the company that the date of closure of the rights issue has now been extended by Rights Issue Committee from October 4 to October 19 of 2012 based on the request from shareholders,” Uttam Sugar Mills Ltd (USML) said in a public advertisement.

Except the date of closure of rights issue, there is no change in the composite application form, abridged letter of offer and letter of offer dated August 28, 2012, it said.

According to the letter of offer, the company would issue 1,23,69,120 equity shares at Rs 22 per share. It would issue 12 equity shares to existing shareholders for every 25 equity shares held by them on September 7.

The objectives of the rights issue are financing the capital contribution margin for additional working capital and repayment of interest free unsecured loan temporarily taken from promoters to fund margin for additional working capital.

The company would utilise Rs 19.89 crore in long term working capital gap and Rs 6.75 crore in repayment of interest free temporary unsecured loan.

Uttam Sugar Mills has four plants with a total installed crushing capacity of 23,750 tonnes a day.

Promoters have 78.07 per cent stake in the company as on June 30, 2012. The company had posted a net loss of nearly Rs 70 crore on a total income of Rs 685 crore in 2011-12 fiscal.

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