01/04/2011 (moneycontrol.com) - South-India based edible oil refiner Sheetal Refineries has filed draft red herring prospectus with the market regulator SEBI for its public issue of upto Rs 60 crore.

The firm is engaged trading and refining of rice bran oil, sunflower oil, soya bean oil, cottonseed oil, palm oil and groundnut oil. It sells majority of products in Andhra Pradesh and Tamil Nadu.

It intends to utilize issue proceeds for setting up additional refining unit with the refining capacity of 75000 TPA at Nandigama; subsidiary company, M/s. Sheetal Siddhi Veg Oil Pvt Ltd, for increasing the refining capacity by 30,000 TPA at Thimmapur; and long term working capital requirements.

"Presently, company has installed capacity of refining edible oil of 30000 TPA and is proposing to set up an additional unit for enhancing its installed capacity by 75000 TPA to cater increasing demand of edible oils."

"It subsidiary Sheetal Siddhi Veg Oil Private Limited has installed capacity of 40000 TPA and is proposing to set up an additional unit for enhancing its installed capacity by 30000 TPA to cater increasing demand of edible oils."

For the period of six months ended on September 2010, it has reported a net profit of Rs 3.12 crore on total income of Rs 179.84 crore.

Chartered Capital And Investment Limited is the book running lead manager to the issue.