Hyderabad, Nov. 3
Alumeco AS of Denmark has acquired majority equity holding of 60 per cent in Pennar Profiles Ltd (PPL), the ailing Hyderabad-based company that cleared institutional dues through one-time settlement (OTS) recently.
As a part of the rehabilitation scheme, the Danish major has pumped in Rs 10.8 crore Rs 7.5 crore as fresh equity and Rs 3.3 crore as cumulative redeemable preference shares, the PPL Managing Director, Mr Bhaskar Rao, told Business Line.
In terms of the rehabilitation scheme, PPL's equity was initially reduced to Rs 2.7 crore from Rs 5.4 crore. While the Danish company has invested Rs 7.5 crore as fresh equity, the Indian promoters led by Mr Nrupender Rao have brought in Rs 2.2 crore of fresh equity, taking the total paid-up equity to Rs 12.4 crore.
Following the capital restructuring, the equity holding of the Indian promoters has come down to around 27 per cent from 55 per cent, Mr Bhaskar Rao said.
The company has used the funds brought in by the Danish major to clear institutional dues of Rs 10.8 crore through OTS. According to Mr Bhaskar Rao, around Rs 37 crore of outstandings were written-off through OTS and the company's net worth has now turned positive.
New chairman: Alumeco has appointed its group Managing Director, Mr Wolfgang Ormeloh, as the new Chairman of Pennar Profiles. Further, the foreign promoters have inducted two new directors on to the PPL board - Ms Deepa Hingorani and Mr Ashish Kumar Gupta.
The Danish major now proposes to invest around Rs 2 crore in the next four months towards additional capital equipment to achieve higher productivity and reduce operating costs. Further, the foreign group also proposes to set up a new foundry with an investment of Rs 6 crore to manufacture billets both for captive consumption and domestic and export markets.
Following the rehabilitation, Pennar Profiles projects a profit before taxation of Rs 2.4 crore on a turnover of Rs 60 crore for the nine months period ending June 2006 and a PBT of Rs 5.2 crore on a turnover of Rs 90 crore for the 12-months period ending June 2007, Mr Bhaskar Rao said.