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Vardhaman Acrylics public offer through book building route
Mumbai, Sept 10: Vardhaman Acrylics Ltd (VAL) is to make a public offer for 2,71,33,127 shares held by promoter Mahavir Spinning Mills Ltd through the book building process and dilute the promoter`s stake by 25 per cent.
Mumbai, Sept 10: Vardhaman Acrylics Ltd (VAL) is to make a public offer for 2,71,33,127 shares held by promoter Mahavir Spinning Mills Ltd through the book building process
and dilute the promoter's stake by 25 per cent.
With the public offer, which opens September 15 and closes on September 19, the promoter company which holds about 67,500,010 shares, would divest its 25 per cent stake in the
company, VAL chairman S P Oswal told reporters here.
Of the total public issue, which would be offered at par, 60 per cent has been allocated on a discretionary basis for Qualified Institutional Buyers (QIBs) and 15 per cent on a proportionate basis to non-institutional bidders, he said. The remaining 25 per cent of the offer would be allocated to retail bidders.
VAL, which has a technological collaboration with Japan Exlan Company Ltd and Marubeni Corporation of Japan, manufactures acrylic staple fibre (ASF) and acrylic tow with a total installed capacity of 16,500 mt per annum at its plant at Bharuch.
The project cost of Rs 255 crore of VAL was financed partially through term loan from IDBI of Rs 148 crore and through equity share capital of Rs 107.50 crore. The outstanding loan as on march 31, 2003 is Rs 91 crore and the balance of Rs 57 crore has been paid to IDBI, he said.
With government imposing restrictions on the import of yarn from Nepal and operation of certain international factors, the prospects of acrylic yarn business are good, Oswal added.
Bureau Report
Of the total public issue, which would be offered at par, 60 per cent has been allocated on a discretionary basis for Qualified Institutional Buyers (QIBs) and 15 per cent on a proportionate basis to non-institutional bidders, he said. The remaining 25 per cent of the offer would be allocated to retail bidders.
VAL, which has a technological collaboration with Japan Exlan Company Ltd and Marubeni Corporation of Japan, manufactures acrylic staple fibre (ASF) and acrylic tow with a total installed capacity of 16,500 mt per annum at its plant at Bharuch.
The project cost of Rs 255 crore of VAL was financed partially through term loan from IDBI of Rs 148 crore and through equity share capital of Rs 107.50 crore. The outstanding loan as on march 31, 2003 is Rs 91 crore and the balance of Rs 57 crore has been paid to IDBI, he said.
With government imposing restrictions on the import of yarn from Nepal and operation of certain international factors, the prospects of acrylic yarn business are good, Oswal added.
Bureau Report