Financial Daily from THE HINDU group of publications
Tuesday, Nov 15, 2005
Financial Daily from THE HINDU group of publications Tuesday, Nov 15, 2005 |
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Corporate
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New Projects HBL Nife plans three new battery units Our Bureau
Hyderabad , Nov 14 HBL Nife Power Systems Ltd, the Hyderabad-based manufacturer of specialised batteries and electronics, has announced a major expansion programme involving enhancement of capacities at the existing facilities and also setting up of three new battery manufacturing facilities. To part finance the expansion programme, the company has recently raised Rs 51 crore through privately placing shares with India Fund, LG Asia Plus, UTI Ventures and Sonata Investments, a Reliance Capital Group firm. The company is currently in the process of raising Rs 22 crore by way of rights offer. In a press release here on Monday, the company said it has issued 20-lakh shares at a price of Rs 255 per share on a preferential basis to raise Rs 51 crore. It now plans to issue 22-lakh shares on a rights basis in the ratio of 1:10 at a price of Rs 100 per share to raise Rs 22 crore. The company said the preferential allotment and rights issue were aimed not only at raising the additional funds for the expansion programme, but also to comply with the terms of Listing Agreement entered into with the stock exchanges and increase public shareholding to the minimum statutory level. The company proposes to get its shares listed on the National Stock Exchange (NSE) after the completion of rights offer, the release said. HBL Nife proposes to set up three new facilities in Andhra Pradesh - one each at Mahabubnagar, Visakhapatnam Special Economic Zone (SEZ) and Vijayanagaram. The company said a new electronics R&D and manufacturing facility in the outskirts here is scheduled to take off in the next 15 months. Following the expansion, the company aims to increase its sales turnover from an estimated Rs 375 crore in current fiscal to Rs 700 crore by March 2008. The company expects the scale economies in expansion of existing business and introduction of new products in Railway Signalling and Defence Electronics would substantially improve its bottom line faster than the top line, the release said.
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