Mumbai based Raj Oil Mills, engaged in the business of crushing and oil filtration, will float its Initial Public Offer today, selling 9.5 million equity shares of the company, prices for which will be decided through a 100% book-building process.

The transaction, with price band of Rs 100-Rs 120, will be assisted by Karvy Investor Services and Bigshare Service (P). The company hopes to raise around Rs 7,916,566.67 via the issue, closing on July 23. The funds will be used to meet its capital requirements for expanding its marketing and distribution network. The firm also aims to set up a facility in Manor, district Thane, Maharashtra from the proceeds of the issue, graded by ICRA as `IPO Grade 2`.

The red herring prospectus has already been filed with market regulator, the Securities and Exchange Board of India (SEBI) and shares will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) very soon.

The company, incorporated on Oct. 17, 2001, will issue at least 50% shares through proportionate basis to qualified institutional bidders (QIBs) and 5 per cent will be reserved for mutual funds.