Business Daily from THE HINDU group of publications
Wednesday, Aug 23, 2006
Business Daily from THE HINDU group of publications Wednesday, Aug 23, 2006 |
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Markets
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Foreign Institutional Investors Corporate - Overseas Borrowings Jayanta Mallick
Kolkata , Aug. 22 H R Kilachand family-controlled Kesar Enterprises has planned to issue foreign currency convertible bonds to overseas investors aiming to mop up around Rs 75 crore. Mr Vipul Doshi, Senior Vice-president (Finance) of Kesar confirmed to Business Line that price negotiations for FCCBs were on with a set of FIIs. "The issue could be finalised within next three months", he added. Total number of FCCBs to be issued would represent between 16 per cent and 20 per cent the company's paid-up capital. The company has already raised the holding ceiling for FIIs to 49 per cent from 24 per cent.
Borrowings
The proposed FCCB issue is part of the multi-pronged fund raising exercise to finance its expansion plans in sugar and liquid storage businesses. Kesar is borrowing Rs 45 crore from Power Finance Corporation and Rs 18 crore from the Sugar Development Fund. It has undertaken a modernisation project for its sugar unit at Baheri in Uttar Pradesh a cost of Rs 11 crore. The company is also implementing a Rs 90-crore 25 MW bagasse-based cogeneration power project at Baheri. This is scheduled to go on stream from November 2007. The company has also decided to expand its bulk liquid storage capacity by building additional tanks at Kandla port. Twenty new tanks are being added at the Kandla facility raising the total to 64 tanks with a capacity of 1,26,676 kilolitres from the present 44 tanks with a total capacity of 89,826 kilolitres. The cost of this project, to be complete by January 2007, is Rs 15 crore.
Warrant conversion
The company is scheduled to raise some Rs 16 crore this fiscal through conversion of warrants, already issued to the promoters and certain other investors. The conversion deadline ends in February 2007. The stock today finished up 2.22 per cent on the BSE at Rs 112.60 with a traded quantity of 17,854.
More Stories on : Foreign Institutional Investors | Overseas Borrowings | Sugar
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