Andhra Petrochemicals

Kalyani Sharp India KALYANI SHARP INDIA is entering the capital market with a simultaneous issue of 20 lakh equity shares of Rs 10 at par and 176,000 12.5 per cent partly convertible debentures of Rs 200 each at par, aggregating Rs 5.52 crore. Each debenture will have two parts: a convertible Part A and a non-convertible Part B, each of Rs 100. Part A will be automatically converted into 10 equity shares on allotment of the debentures. Part B will be redeemed in three instalments at the end of the 8th, 9th and 10th year from the date of allotment. Kalyani Sharp, promoted by Bharat Forge of the Kalyani group, manufactures CTVs, black and white TVs and VCRs under the brand name 'Optonica'. The company's sales have increased from Rs 7.04 crore in 1986-87, the first full year of production, to Rs 71.89 crore in 1990-91, The company now proposes to increase the installed capacity of CTVsfrom 75,000 to 1,00,000 and VCRs/VCPs/ VTDMs from 50,000 to 3,00,000. The company has entered into a joint venture agreement with Sharp Corporation, Japan, under which the latter will contribute 40 per cent of the equity capital and transfer VCR technical know-how to the company. The estimated cost of the expansion project is Rs 51.50 crore, which is to be financed through equity capital Rs 14.04 crore (Bharat Forge Rs 5.74 crore, Sharp Corporation Rs 6.32 crore and general public Rs 2 crore), foreign currency loan from financial institutions Rs 16 crore, rupee term loan from financial institutions Rs 5 crore, term loan from bank Rs 7 crore, privately placed non-convertible debentures Rs 4.69 crore, issue of partly convertible debentures to public Rs 3.52 crore and internal accruals and subsidy Rs 1.25 crore. The CTV expansion is likely to be completed by December 1992 and the VCR/VCP/VTDM full implementation by June 1993. The issue will open on October 21. SB! Capital Markets and DSP Financial Consultants arc the lead managers to the issue.