MUMBAI (Commodity Online): An integrated edible oil food company, K.S. Oils Ltd (BOM: 526209) today announced the further acquisition of 53,000 acres of land for palm oil plantations in Indonesia.

The company stocks traded with positive mark on the Bombay Stock Exchange (BSE) during the afternoon trading session today.

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Company stocks gained by close to 1% to Rs.68.50. The stock has been on the rise for past one month, as the stock price appreciated by close to 17% during a month’s time. K.S. Oils, which traded at Rs.58.45 a month back has seem increased buoyancy on the back of company’s rising land bank.

The company has continued its focus on South East Asia to build plantation assets. Today, it announced the further acquisition of 53,000 acres of land for palm oil plantations in Indonesia.

This is the third tranche of land parcel acquired by the company, in addition to the previously acquired 85,000 acres in two deals in 2008 and 2009. After this acquisition, the company’s land bank in Indonesia stands at 1, 38,000 acres, the largest owned by any Indian company.

According to company estimates, the total development cost of the project would be around Rs.380 crore spread over three years. The funding will be done through the wholly owned subsidiary K S Natural Resources, Singapore (KSNR).

KSNR has recently tied-up for an equity infusion of Rs.375 crore from its parent, K S Oils Ltd., India which in turn raised Rs.450 crore through PE Investors and promoter group. Thus, there would be no fund infusion or equity dilution required in K S Oils, India.