Bharat Zinc

Bharat Zinc BHARAT ZINC is promoted by the Guptas, Hari Mohan, Madan Mohan and Rajiv Mohan, who own the daily Dainik Jagran. It is setting up at Mandideep in Madhya Pradesh a Rs 7.83 crore project with a capacity of 2,800 tonnes per annum of electrolytic grade zinc and 4,253 tonnes per annum of GOB zinc metal. The project cost, appraised by the I FCI, was originally placed at Rs 4.70 crore in March 1991, but was revised to the present figure in December 1992. It is to be met with equity share capital of Rs 4.62 crore (promoters' contribution being Rs 1.14 crore) and Rs 3.60 crore of loans from the Madhya Pradesh Audhyogic Vikas Nigam. The company already has on books a paid-up share capital of Rs 1.50 crore. It is issuing now 31 20 lakh shares of Rs 10 each at par, offering out of this 12 lakh shares to the NRIs and the balance 19.20 lakh shares to the public The issue opens on May 3 under SBI Capital Markets and IFClas lead managers. The company is to procure 40 per cent raw material requirements from indigenous sources and import the rest 60 per cent from the US, Germany and Canada. Sulphuric acid is to come locally. IFCI has projected for the company sales of Rs 31.07 crore at 60 per cent capacity utilisation for 1993-94, Rs 36.25 crore at 70 per cent capacity utilisation for 1994-95 and Rs 41.43 crore at 80 per cent capacity utilisation for 1995-96. Net profit is estimated for the respective years at Rs 1.79 crore, Rs 2.08 crore and Rs 2.43 crore. EPS is placed at Rs 3.87, Rs 4.50 and Rs 5.25 respectively for the three years, while the IFCI has estimated divi dend at 20 per cent for the very first year.