Calcutta, Nov. 16: Triveni Engineering and Industries Limited will hit the capital market on November 18 to fund the expansion plans for its sugar and engineering divisions.

“We will invest Rs 259.58 crore to set up new sugar units and expand the turbine and gear business. The expenditure will be financed through a mix of debt and proceeds of the public issue,” said Tarun Sawhney, corporate vice-president, Triveni Engineering.

The expansion plans include setting up a 7,000-tcd sugar mill at Sabitgarh in Uttar Pradesh and a co-generation plant at Khatauli, and raising the capacity at its Bangalore plant for turbines and gear businesses.

The company will offer 5 crore shares with a face value of Re 1 each at a price band of Rs 42 to Rs 50 under the public issue. It will remain open till November 25. Triveni Engineering will, therefore, raise Rs 210 crore at the lower end of the band and Rs 250 crore at the higher end.

The company has appointed JM Morgan Stanley and ICICI Securities as the book running lead managers to the public issue.

“We also plan to set up two more sugar units and is currently exploring the possible sites and the investment requirements. It will increase the total sugar capacity to 52,000 tcd over the next 12-15 months from the current capacity of 40,500 tcd from four units,” said Sawhney.

The company will also double its gear and turbine capacity and will invest Rs 18.4 crore in the turbine unit and Rs 25.6 crore for the gear business, said Sawhney.

“We plan to de-risk our business model and wish to increase the share of engineering revenue,” he added.

After the issue, promoters’ holding in the group will decrease to 72.56 per cent. Also, the promoters may consider various alternatives to transfer or sell 10 per cent of the post-issue equity capital next year.