Sunshield Chemicals Ltd, a Amit Choksey group company, has announced a 1:1 rights issue. The company is raising long-term resources to fund its expansion and diversification plans at a cost of around Rs 30 crore and for redeeming its preference share capital of Rs 5 crore. At present, thepaid up equity capital is Rs 3.68 crore. The company has decided to launch an expansion-cum-diversification project estimated at Rs 30 crore following improved business from its overseas and Indian customers. The project envisages manufacturing key raw material partly for internal consumption and partly for commercial sales. The project also envisages expansion of manufacturing facilities for producing anti-oxidants and specialty chemicals for a variety of end user industries such as rubber, tyre and glass, a release said. With increased capacities, the company hopes to achieve economies of scale for meeting global competition. The company on its turnaround path has achieved a 52 per cent sales growth at Rs 22 crore for the nine-month period ended December 2005 as against Rs 14.55 crore for the year-ago period.
