Baroda Dyeing

Kirloskar Oil Engines Kirloskar Oil Engines (KOEL), one of the largest manufacturers of internal combustion diesel engines, is making a rights issue of 50,31,250 equity shares of Rs 10 each at a premium of Rs 40 per share aggregating Rs 25,15,62,500. KOEL has also decided to issue 10,00,000 15 per cent redeemable non-convertible debentures of Rs 100 each at par, to be issued along with two detachable and separately tradable warrants, aggregating Rs 10 crore to the existing shareholders of the company. The rights entitlement is seven shares for every eight equity shares held. KOEL is raising resources, amongst other objects, to part finance a Rs 147 crore hi- tech pig iron project with a foundry near Hospet in Raichur district in Karnataka. Towards this object, KOEL and Shivaji Works (also of the Kirloskar group) have jointly floated a new company called Kirloskar Ferrous Industries which will have a total equity of Rs 60 crore. KOEL is investing Rs 15 crore as equity in the newly promoted company while the equity participation of SWL is of the order of Rs 7 crore. Industrial Development Bank of India, which has appraised the project, has sanctioned a loan of Rs 90 crore. Tata Korf Engineering Services will provide the mini-blast furnace technology, process know-how, detailed engineering and supervisory services for erection and commissioning of the pig iron manufacturing facilities. A state-of- the-art grey iron foundry of 37,500 tonnes per annum capacity with pig iron manufacturing facilities of 1,20,000 tpa will be located on a 180 acre plot near Hospet. The project when completed in January 1994, will cater to the pig iron requirements of Kirloskar group companies, including Shivaji Works in Solapur in Maharashtra. The grey iron foundry will manufacture castings for the diesel engine automobile and tractor markets. In the first half of 1992-93, KOEL's net sales and other incomes have risen to Rs 91,96 crore from Rs 76.88 crore during the corresponding period last year and its gross profit to Rs 5.5 crore from Rs 3.82 crore The rights issue opens on December 14, 1992 and will close on January 14, 1993.