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

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Bhuwalka Steel

ATV Projects ATV PROJECTS, a profit-making and dividend-paying company engaged in execution of turnkey projects and construction engineering, is carrying out a major diversification programme entailing a capital outlay of Rs 124.7 crore for the manufacture of 20,000 tpa of thermoplastic elastomer at Roha in Raigad, Maharashtra. The company has entered into a technical and financial collaboration agreement with Filex Corporation, USA. It will be the first project of this kind in India and the third in Asia to manufacture this polymer The project is expected to be commissioned in June 1993. The company is issuing convertible debentures amounting to Rs 97.1 crore. Each debenture having a face value of Rs 192 comprises two parts. Part A of Rs 52 will be converted into two equity shares at an issue price of Rs 26 per share and part B of Rs 140 into four equity shares at an issue price of Rs 35 per share at the end of six months and 18 months from the date of allotment, respectively. The capital outlay on the project at Rs 124.7 crore is being funded by convertible debentures of Rs 97.1 crore, term loans and lease finance of Rs 11 crore, cash accruals of Rs 16.4 crore and subsidy of Rs 0.2 crore. Thus the loan component forms 8.8 per cent. Plant and machinery at Rs 54.8 crore has an import content of Rs 20 crore to be met from the subscription to equity capital from NRls against the preferential quota of Rs 16.90 crore. According to Mahesh V Chaturvedi, chairman, and Suresh V Chaturvedi, vice chairman, sales turnover at 60 per cent capacity utilisation in 1993-94 is expected to touch Rs 219 crore and rise to Rs 389 crore at 100 per cent capacity utilisation in 1996-97. The issue opens on January 9, 1992.

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