PCBL to raise Rs 50-cr from market
The company intends to place the preferential shares and warrants to the promoters, the Goenkas of RPG Enterprises, as well as to ICICI Bank and a clutch of private equity investors.
By TNN |
Phillips Carbon Black Ltd (PCBL) on Monday obtained shareholders’ approval to raise some Rs 50 crore of fresh resources from the market through preferential issue and warrants to finance future projects, including the proposed power project at Durgapur plant.
The company intends to place the preferential shares and warrants to the promoters, the Goenkas of RPG Enterprises, as well as to ICICI Bank and a clutch of private equity investors.
Proceeds from the preferential issue will be partly used to set up a co-generation power plant at Durgapur entailing an investment of Rs 115 crore and meet the long term working capital requirement.
The captive power plant will help the company reduce power costs and boost its bottomline, said Mr Sudhir Sahgal, managing director of PCBL, after the company’s general body meeting in Kolkata. The proposed 30 mw power plant will be ready in 18 months. Currently, PCBL’s power bill stands at Rs 3 crore every year.
Elaborating on the issue, Mr Sahgal said of the Rs 49.5 crore being raised through the issue, the company intends to set aside a sum of Rs 40 crore for the power project. Balance Rs 9.5 crore will be used to meet the working capital requirements. The company has also tied up loans worth Rs 75 crore for the power plant, he added.
Shares and warrants will be issued at Rs 66 a piece. In case of warrants, the warrant holder will have the option to subscribe to one equity share per warrant within 18 months of the issue. On Monday, the PCBL stock closed at Rs 89.05 on the Bombay Stock Exchange (BSE).
While the promoters, promoters group, their friends and associates will be offered 30,00,000 warrants, Land Lease Company India Ltd will be offered 10,00,000 warrants. Others like ICICI Bank, Meenakshi Mercantile, Anjana Projects and Silvercross Marketing will be offered 35,00,000 shares on a preferential basis. As on June 30, 2006, the promoters’ held a 54.46 % of the company’s total paid up capital.
The company intends to place the preferential shares and warrants to the promoters, the Goenkas of RPG Enterprises, as well as to ICICI Bank and a clutch of private equity investors.
Proceeds from the preferential issue will be partly used to set up a co-generation power plant at Durgapur entailing an investment of Rs 115 crore and meet the long term working capital requirement.
The captive power plant will help the company reduce power costs and boost its bottomline, said Mr Sudhir Sahgal, managing director of PCBL, after the company’s general body meeting in Kolkata. The proposed 30 mw power plant will be ready in 18 months. Currently, PCBL’s power bill stands at Rs 3 crore every year.
Elaborating on the issue, Mr Sahgal said of the Rs 49.5 crore being raised through the issue, the company intends to set aside a sum of Rs 40 crore for the power project. Balance Rs 9.5 crore will be used to meet the working capital requirements. The company has also tied up loans worth Rs 75 crore for the power plant, he added.
Shares and warrants will be issued at Rs 66 a piece. In case of warrants, the warrant holder will have the option to subscribe to one equity share per warrant within 18 months of the issue. On Monday, the PCBL stock closed at Rs 89.05 on the Bombay Stock Exchange (BSE).
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While the promoters, promoters group, their friends and associates will be offered 30,00,000 warrants, Land Lease Company India Ltd will be offered 10,00,000 warrants. Others like ICICI Bank, Meenakshi Mercantile, Anjana Projects and Silvercross Marketing will be offered 35,00,000 shares on a preferential basis. As on June 30, 2006, the promoters’ held a 54.46 % of the company’s total paid up capital.
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