IMFA merges with ICCL; to invest Rs 700 cr
Indian Metals and Ferro Alloys (IMFA) on Monday announced the merger of its subsidiary Indian Charge Chrome Limited (ICCL) with itself and said it plans to invest Rs 700 crore in next three years to increase capacity.
By PTI |
NEW DELHI: Indian Metals and Ferro Alloys (IMFA) on Monday announced the merger of its subsidiary Indian Charge Chrome Limited (ICCL) with itself and said it plans to invest Rs 700 crore in next three years to increase capacity.
"The merger will help us fully capture the operational and financial synergies and a consolidated balance sheet position as well to effectively implement IMFA's aggressive plans," company Managing Director Subhrakant Panda said in a release here.
Net worth of the merged entity is Rs 124 crore, out of which the promoter shareholding is 57 per cent. Its projected turnover is Rs 500 crore in fiscal 2007.
With a buoyant steel demand both domestically and internationally, IMFA plans to invest Rs 700 crore over the next three years to increase its ferro-alloys capacity from the present 2.35 lakh tonnes to 3.5 lakh tonnes per annum. It is also in the process of setting up a 120 MW coal-fired power plant, the release added.
"With all these plans, we are optimistic of achieving a turnover of over Rs 1,000 crore by 2010," the release quoted him as saying.
ADVERTISEMENT
An integral part of the merger scheme is the formation of an independent trust, which would hold about four per cent of the post-merger equity of IMFA to be distributed to small shareholders at a minimum discount of 50 per cent of the market price, it added.Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
