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

A+| A| A-

Armour Polymers

Core Parenterals CORE PARENTERALS is issuing 8,50,000 14 per cent partly convertible debentures of Rs 190 each at par for a total of Rs 6,15 crore. Out of the issue 4,67,500 debentures are reserved for preferential allotment as follows: to shareholders of the company (85,000), to working directors/employees (42,500) and to non-resident Indians (3,40,000). The balance of 3,82,500 debentures are being offered to the Indian resident public. The public issue will open on February 18. Each debenture will comprise three parts: part A of Rs 35, part B of Rs 85 and part C of Rs 70. Part A will be converted into one equity share of Rs 10 at a premium of Rs 25 six months after the allotment of the debentures. Part B will be converted into such number of shares at such price as may be determined by the Controller of Capital Issues 21 months from the date of allotment. Part C will be redeemed on the expiry of seven years from the date of allotment. The share capital of the company will increase from Rs 2.30 crore to Rs 3.15 crore consequent upon the first conversion of the debentures and a share premium account of Rs 2.13 crore will be created. Core Parenterals, promoted by B R Handa, Sushil Manda and Sunil Handa, is engaged in manufacturing intravenous (IV) fluids. At the end of the last financial year the company's installed capacity stood at 180 lakh bottles per annum, representing a three-fold expansion of the capacity of 60 lakh bottles per annum with which the company commenced operations in 1988. The company is now installing additional capacities of 180 lakh bottles of large volume IV fluids and 450 lakh ampoules of water for injection. The company's plant is located at Rajpur in Mehsana district of Gujarat. The total cost of the expansion project is estimated at Rs 37 crore and is expected to be financed through the issue of partially convertible debentures Rs 16.15 crore, issue of non- convertible debentures Rs 2 crore, internal accruals Rs 6.97 crore and term loans from IFCI Rs 11.88 crore (foreign exchange loan Rs 10.10 crore and rupee loan Rs 1.78 crore). Core Parenterals recorded sales of Rs 13.20 crore in the financial year ended March 31, 1991 and a post-tax profit of Rs 2.57 crore and declared a dividend of 21 per cent. Champak Lal investment and Financial Consultancy and Indbank Merchant Banking Services are the Lead Managers to the issue.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Back to Top