SAPL to mop up Rs 150 cr to fund petrochemical units
The Rs 1,000-crore South Asian Petrochem will mop up Rs 150 crore through preferential issue and foreign currency convertible debentures to fund its upcoming unit in Egypt and a downstream petrochem facility in West Bengal.
By TNN |
KOLKATA: The Rs 1,000-crore South Asian Petrochem (SAPL) has decided to mop up Rs 150 crore through preferential issue and foreign currency convertible debentures to fund its upcoming unit in Egypt and a new downstream petrochemical facility in West Bengal. The board of SAPL will meet on November 8 to approve the proposal.
In a notice sent to BSE on Thursday, the company said: “The board of directors will meet on November 8 to consider preferential issue of equity shares to international institutional investors and to promoter companies. The board will also consider issue of foreign currency convertible debentures up to $20 million.”
When contacted, SAPL vice-chairman, CK Dhanuka told ET: “We plan to mop up Rs 80 crore through foreign currency convertible debentures. We will raise another Rs 70 crore through issue of preference shares to FIIs and promoter companies.” However, he declined to name the FIIs to whom the preference shares will be issued.
Of this Rs 150 crore, SAPL plans to invest Rs 95 crore in its upcoming polyethylene terephthalate (PET) resin plant in Egypt. SAPL has a 70% stake in this Egyptian venture and the rest 30% is held by Egyptian Petrochemical Holding Company (ECHEM). The capacity of the Egyptian plant is 3.15 lakh tonne per annum (TPA) and is being set up at a capital outlay of $100 million.
“We are also toying with the idea of setting up a new project in West Bengal. This will be in the petrochemical sector. The balance Rs 55 crore will be deployed for this new plant,” Mr Dhanuka added.
Elaborating on his Egypt plan, Mr Dhanuka said: “The construction work for the project has already begun. Commercial production is expected to commence in 2009. The new plant will employ 800 people, directly and indirectly.”
Incidentally, at present, Egypt does not have any PET resin project even though the country consumes 60,000 TPA. The new plant will not only meet Egypt’s requirement but will also export PET resin to the US and Europe. PET resin, which is witnessing a growing demand the world over, is used in packaging of mineral water, carbonated soft drinks, edible oils and pharmaceuticals.
“Sourcing PTA (purified terephthalic acid) and MEG (monoethylene glycol), the two major raw materials for the PET plant, will not pose any problem. We will buy 2.5 lakh tonne PTA from Mitsubishi Chemical Corporation India. MEG will be sourced from the Middle East,” Mr Dhanuka said.
In a notice sent to BSE on Thursday, the company said: “The board of directors will meet on November 8 to consider preferential issue of equity shares to international institutional investors and to promoter companies. The board will also consider issue of foreign currency convertible debentures up to $20 million.”
When contacted, SAPL vice-chairman, CK Dhanuka told ET: “We plan to mop up Rs 80 crore through foreign currency convertible debentures. We will raise another Rs 70 crore through issue of preference shares to FIIs and promoter companies.” However, he declined to name the FIIs to whom the preference shares will be issued.
Of this Rs 150 crore, SAPL plans to invest Rs 95 crore in its upcoming polyethylene terephthalate (PET) resin plant in Egypt. SAPL has a 70% stake in this Egyptian venture and the rest 30% is held by Egyptian Petrochemical Holding Company (ECHEM). The capacity of the Egyptian plant is 3.15 lakh tonne per annum (TPA) and is being set up at a capital outlay of $100 million.
“We are also toying with the idea of setting up a new project in West Bengal. This will be in the petrochemical sector. The balance Rs 55 crore will be deployed for this new plant,” Mr Dhanuka added.
Elaborating on his Egypt plan, Mr Dhanuka said: “The construction work for the project has already begun. Commercial production is expected to commence in 2009. The new plant will employ 800 people, directly and indirectly.”
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Incidentally, at present, Egypt does not have any PET resin project even though the country consumes 60,000 TPA. The new plant will not only meet Egypt’s requirement but will also export PET resin to the US and Europe. PET resin, which is witnessing a growing demand the world over, is used in packaging of mineral water, carbonated soft drinks, edible oils and pharmaceuticals.
“Sourcing PTA (purified terephthalic acid) and MEG (monoethylene glycol), the two major raw materials for the PET plant, will not pose any problem. We will buy 2.5 lakh tonne PTA from Mitsubishi Chemical Corporation India. MEG will be sourced from the Middle East,” Mr Dhanuka said.
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