Aarti Drugs

Jindal Iron and Steel JLNDAL group's Jindal Iron and Steel Company has chalked up an expansion programme and besides plans for investment in other group companies' expansion programme The proposals as appraised by ICICI are to entail investment of funds of Rs 250 crore, which the company is meeting with a rights-cum-public issue of zero interest fully convertible debentures of Rs 100 each and further with institutional term loans of Rs 15 crore. In addition to the ICICI, SBl Caps, IDBI, Kotak Mahindra and Credit Capital are the lead managers of the issue which is opening on May 10. The public is being offered 1.05 crore FCDs and 27 lakh FCDs are reserved for NRls. Following this issue, the stake of the promoters (P R Jindal and S Jindal) in the company will stand reduced from 52 per cent to 31 per cent. The debentures issued to the public will be converted into Rs 10 equity shares at a premium of Rs 90 per share and those issued as rights to the shareholders at a premium of Rs 50 per share, The company as it was incorporated in the year 1972 had belonged to the Piramal group. Jindals took it over in 1983 by acquiring a 40 per cent controlling interest for a consideration of Rs 45 lakh. Jindal group now comprises, other than Jindal lron and Steel, Jindal Strips, Jindal Ferro Alloys, Saw Pipes and Shalimar Paints. Jindal Iron is expanding its steel division's capacity at Tarapur from 1,50,000 tonnes per annum to 3,00,000 tonnes per annum of steel slabs with a matching increase in the capacity of the hot rolling division from 1,50,000 tonnes per annum to 2,80,000 tonnes per annum of coils and plates. In addition, the company is enhancing cold rolling facilities from 20,000 tonnes per annum to 50,000 tonnes per annum. The expansion is expected to be completed by November 1994 and it is to be in production by March 1995.