The Hindu Business Line : Adhunik Metaliks plans to list its subsidiary

(From left) Mr Nilotpal Roy, Joint Managing Director, Adhunik Metaliks Ltd, with Mr Manoj Agarwal, Managing Director, and Mr G. D. Agarwal, Director, Adhunik Group of Industries, at a press conference in Mumbai on Tuesday. —

Our Bureau

Mumbai, Aug. 19 The BSE-listed Adhunik Metaliks Ltd has plans to raise Rs 250-300 crore by listing its subsidiary Orissa Manganese and Minerals Ltd (OMM) by end of the year.

Mr Manoj Kr. Agarwal, Managing Director, Adhunik Metaliks Ltd, said, “We have finalised two merchant bankers and expect to complete the draft red herring prospectus in 60 days.”

Adhunik Metaliks acquired OMM for Rs 70 crore in 2007 and retained it as its 100 per cent subsidiary. Manganese ore mines started in fourth quarter of financial year 2008 for sale in open market, while iron ore mine is expected to start production by third quarter of financial year 2009, said Mr Agarwal.

Manganese export

The company has begun exporting manganese ore last month, while iron ore export is expected to begin next month, said Mr Alok Kumar Sharda, Chief Financial Officer, Adhunik Metaliks.

OMM owns about 90 million tonnes (mt) of iron ore at Ghatkuri in Jharkhand, 50 mt of manganese ore at Patmunda, Orissa besides sizeable deposits of dolomite at Sundergardh, Orissa and graphite at Daltanganj in Jharkhand. The reserves are spread over an area of more than 2,000 hectares.

OMM is one of the few merchant (not for captive purpose) mining companies that have iron and manganese ore mines. However, Adhunik Metaliks sources 20 per cent of its requirements from OMM, said Mr Sharda.

OMM will invest Rs 1,100 crore to set up plants that will convert iron ore fines into pellets and process low-grade manganese ore waste for use in ferro alloy unit. The pellet and iron ore beneficiation plants will come up in Nuamundi, Jharkhand and manganese ore beneficiation plant at Dhenkanal, Orissa.

The company sells its produce in the spot markets rather than entering into long-term contracts. “Manganese is sold at Rs 15,000 per tonne, while iron ore fetches between Rs 4,500 and Rs 7,000 a tonne depending on the quality,” said Mr Sharda.

The company registered a net profit of Rs 15.06 crore in the first quarter ended June, while the turnover was Rs 25 crore.

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