Jalan Forgings

Kirloskar Electric Company KIRLOSKAR ELECTRIC is making an issue of 10,08,964 12.5 per cent fully convertible debentures of Rs 195 each at par aggregating Rs 1,967 lakh. Of these, 6,69,964 debentures are being offered to the existing shareholders of the company on rights basis in the ratio of 1 debenture for every 14 equity shares held and 33,498 debentures are being offered to the working directors/employees of the company. The balance of 3,05,296 debentures are being offered to the public Of the public issue, 15,265 debentures are reserved for preferential allotment to working directors/employees. Each debenture will consist of two parts: part A of Rs 60 and part B of Rs 135. Part A will be converted into two equity shares of Rs 10 each at a premium of Rs 20 per share at the end of 12 months from the date of allotment of the debentures. Part B will be con verted 20 months from the date of allotment of the debentures into such number of equity shares and at such price as may be decided by the Controller of Capital Issues. Kirloskar Electric has prepared a long range plan to meet the growing demand for electrical products and system packages. This would require, inter alia, expansion of capacity to manufacture AC machines in the company's Hubli unit and establishing of facilities to manufacture AC and DC machines up to 20 MW ratings in the Bangalore units. The production capacity of the Hubli unit is proposed to be increased from 5.51 lakh HP to 14 lakh HP over a period of three years ending March 31, 1994 at an estimated cost of Rs 325.40 lakh. It is also proposed to expand the in-house capacity for manufacture of castings and stampings over the same three-year period at a cost of Rs 542.27 lakh. Further, the company is also implementing a programme of modernisation, replace- ment and setting up of balancing facilities at all its manufacturing units which is estimated to cost Rs 2.782 lakh. The total capital expenditure on expansion, modernisation, replacement and creation of balancing facilities is estimated at Rs 6,270 lakh which is expected to be financed through the convertible debenture issue (Rs 1,967 lakh) and internal accruals (Rs 4,303 lakh). The public issue of debentures will open on October 28. ICICI (Merchant Banking Division) and Champaklal Investments and Financial Consultancy are the lead managers to the issue.