Small cap firm, Temptation Foods, may acquire Hindustan Lever Ltd''s marine product business for Rs120 to Rs150 crore. "We have diclosed that we have bid for that business, but at this point, we are under a non-disclosure agreement. And I can''t comment anything beyond that," said Vinit Kumar, head, Temptation Foods.

He added that the company had the shareholders approval to raise the money. Kumar said, "Our shareholders have approved Rs150 crore that we are raising for a number of acquisitions that we are planning."

Asked about the route that the company would raise the funds for the acquisition, Kumar said, "We have decided to go the qualified institutional placement, or QIP, route and the QIP document is under preparation."

He said that at the annual general meeting on Monday, the company had released an information memorandum that has been put on the BSE website.

"We are looking at raising it in the form of a convertible note. It is a fully convertible note. At this point of time, that is the structure that we are talking to various investors," Kumar said.

As to the impact that the marine business acquisition would do to their business via synergies, Kumar said, "We are a frozen food company. If and when a marine acquisition does happen, obviously we are looking to synergise the frozen expertise that we have."

He further added that the cross-play between the customers and the various such opportunities that were emerging in the domestic retail should provide opportunities to exploit and synergise the various acquisitions that the company makes.

Kumar said, "We are growing our organic business quite aggressively and we would maintain our growth rate in terms of our profit. If we do buy these kind of businesses, it would significantly improve our topline by almost 7-8 times."

As to how the company will close in 2008 in terms of sales, he said, "Depends on what actualy comes into the fold and at what time.

Let us say that for a full year, then it could work out to Rs 300-350 crore."

As to the reason behind the company''s Board approving increasing the FII holding, which was currently at 15 per cent, to 74 per cent he said, "Primarily there is a lot of interest among the FIIs in our company; and as a result of the QIP, certainly there would be substantial FIIs that would come to pick up the convertible paper that we are putting out. As a precursor to that we have increased the FII limit to 74 per cent."