ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Oil Country Tubular

IN THE CAPITAL MARKET Oil Country Tubular OIL COUNTRY TUBULAR, promoted by K Suryanarayana, a metallurgical engineer, is setting up a project at Cheruvugattu in Nalgonda district, Andhra Pradesh, in technical and financial collaboration with Baker Hughes Tubular Services of the US to produce 10,000 mt of drill pipes, 15,000 mt of production tubing and 25,000 mt of casing pipes in one integrated plant. To meet part of the finance required for the project, the company is entering the capital market with a public issue of 1,11,50,000 equity shares of Rs 10 each for cash at par aggregating Rs 11.15 crore. Of this total amount, preferential allotment to employees at Rs 1,14,25,000, to non-resident Indians at Rs 3,52,30,000,to SBI Mutual Fund at Rs 50,00,000 and to Canbank Mutual Fund at Rs 50,00,000 will be made and equity shares valued at Rs 5,48,45,000 will be offered to the Indian public. According to K Suryanarayana, chairman and managing director, its collaborators have agreed to marketing 50 per cent of its production. The company is also entitled to 35 per cent price preference over international prices. Supply of goods and services are 'deemed exports' and so the company is entitled to such benefits as advance and duty-free imports, export incentives, etc. The issue opens for NRIs on February 9 and for Indian public on February 15.

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