By Supun Dias
Pelwatte Dairy Industries PLC will launch an Rs.450 million Initial Offer (IPO) at the end of this month or in the first week of February Pelwatte Dairy Industries PLC Chairman Ariyaseela Wickremanayake said.
He said that 20% of the company's Rs.2.5 billion net capital will be offered to the public.
Rs.450 million shares will be offered at Rs.1 each, he said.
He also said that the company's Rs.2.5 billion capital includes the milk processing factory and an animal feed production factory which is the only such factory in the country.
Spelling out the reasons for going for an IPO, Wikramanayake said that he was going for an IPO because there was a lot of capacity for milk production in Sri Lanka. He is also rather upbeat about his Pelwatte Dairy producing 20% of the milk requirement following the IPO.
On behalf of Pelwatte Dairy Industries, the Merchant Bank of Sri Lanka will be handling the IPO.
"Some of the products such as yoghurt, ice-cream and milk packets are already in the market. We are in the final phase in completing the powder plant and presently we have a capacity to produce 150,000 litres of milk every day" Wickramanayake said.
"Around 25,000 farmers work directly with our dairy factory in Pelawatte and 40,000 are dependent on the venture as a result of it", he added.
He also noted that in achieving the goal of the government to be self sufficient in milk production by 2016, the country will be able to save around US 300 million dollars annually and that money can be invested and distributed among the people and also be invested in local industry.
source - www.dailymirror.lk
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