Empee Distilleries shares trade 17% lower

Empee Distilleries shares trade 17% lower

Mumbai: Shares of alcoholic beverage maker Empee Distilleries Ltd were trading nearly 17% below its issue price of Rs400 on Monday.

The shares, which listed up 10% at Rs440, were trading at Rs334.50 in a firm Mumbai market, after having seen a low of Rs301.

Empee Distilleries, whose main brands include Old Secret Rum and Napoleon Premium Brandy, plans to introduce whiskey products to Andhra Pradesh and Karnataka, joint managing director Nisha Purushothaman said on television channel CNBC-TV18.

The company raised Rs1.92 billion through the issue of 4.8 million shares in its initial public offering to increase expand its capacity and set up a bio-mass based power plant in the southern state of Tamil Nadu.

“We will be selling the power to the Tamil Nadu Electricity Board," she said. “The profits are exempt from tax and this will be able to contribute to our bottomline."

The company recorded sales of Rs5.3 billion and profit after tax of Rs164 million in the nine months to June 2007.