Kolkata, Nov. 2
Nandan Exim counter recorded a combined traded quantity of 63-lakh shares on the BSE and NSE even though the Re 1 face-value stock declined around 5 per cent to Rs 14.30.
According to market sources, traders are active in the counter of late expecting major investment decisions by the company. Grapevine suggests that it is diversifying into infrastructure business a textiles park and a township around Ahmedabad. Expansion is expected in denim capacity and backward integration through spindle additions.
Mr Vedprakash Chiripal, Chairman, responding to
Business Lineover telephone confirmed that expansion and diversification projects were on. The cost of the expansion project is Rs 327 crore, to be funded by debt and equity. The textiles park is estimated to cost Rs 250 crore.
Mr Chiripal said IL&FS was the consultant to the park project, which is to be built on the already acquired 95 acres of land and would house 21 units, one being from Nandan. It has planned an FCCB issue to part finance the project at hand. He, however, said the issue is at a preparatory stage. Merchant banking sources felt that FCCBs could be priced between Rs 15 and Rs 16 with a conversion timeframe of 3 to 5 years.
Nandan has also recently allotted 1.28 crore shares at Rs 13.25 each on preferential basis to promoters (15 per cent) and non-promoters (85 per cent).
The company has posted a net profit of Rs 5.49 crore in the quarter ended September 30, 2006 compared with Rs 3.60 crore posted during the corresponding quarter of the previous fiscal. Turnover increased by 48 per cent to Rs 59.09 crore and has proposed an interim dividend of 7.5 per cent. It has also planned 1:1 bonus shares.