Dhanlaxmi Bank would be exploring all options to mobilise Rs1,000 crore by the end of the first quarter of this fiscal
Kerala based lender Dhanlaxmi Bank Ltd (DLB) has said it would be exploring all options to mobilise Rs1,000 crore by the end of the first quarter of this fiscal.
The bank has decided to issue about 5.5 crore equity shares of Rs10 each and the process would be completed by the end of the first quarter of FY12 or June-end, bank's executive director, PG Jayakumar said.
On the mode of mobilisation of funds, he said all options like qualified institutional buyers, foreign institutional investors and foreign corporate bodies would be considered.
The option of global depository receipts, American depository receipts and the foreign currency convertible bonds routes would also be considered seriously, he said.
The mobilisation of funds would be subject to the approval of the Foreign Investment Promotion Board ad other appropriate authorities like the RBI, SEBI and the stock exchanges.
Mr Jayakumar said the bank has also decided to double its authorised capital to Rs200 crore from the present Rs100 crore.
He said the bank had also decided to cancel about 32.59 lakh equity shares out of the issued capital of the bank with a view to setting the records right, as they were the shares neither taken nor agreed to be taken by any one when the shares were issued in the 1990s.
Answering another query, the executive director said the premium price for the issue of the shares was not yet fixed and the process for the fixation of price was progressing.
The bank has issued 2.10 crore equity shares with a face value of Rs10 each at a premium of Rs171.30 per shares and expect to get a reasonable price for the proposed issue of shares, he said.
On Tuesday, Dhanalaxmi Bank ended 5.22% down at Rs8.89 on the Bombay Stock Exchange, while the benchmark Sensex ended 0.20% to 19,545.35.
“The pricing environment may remain challenging and with the impact of surplus capacity, margins continue to remain under pressure,” UltraTech said in its outlook for the current fiscal
New Delhi: UltraTech Cement, the country’s largest cement-maker, today said it will spend around Rs11,000 crore over three years to increase its cement-making capacity by 9.2 million tonnes per annum (mtpa), reports PTI.
“The company has a capital outlay of around Rs11,000 crore, to be spent over the next three years. These include setting up of additional clinkerisation plants in Chhattisgarh and Karnataka, together with grinding units, bulk packaging terminals and ready-mix concrete plants across the country,” the Aditya Birla Group firm said in a statement.
UltraTech said that orders have already been placed for major equipment for setting up the projects.
“These expansions are expected to be operational from early FY13-14 and will enhance the company’s cement capacity by 9.2 mtpa,” it said.
UltraTech Cement has 52-mtpa annual capacity. It has 11 integrated plants, one white cement plant, one clinkerisation plant in the UAE and 15 grinding units. It is also the country’s largest exporter of cement clinker.
Meanwhile, due to subdued demand growth for cement, the company’s net sales stood at Rs13,210 crore and profit before interest and tax at Rs2,063 crore in FY10-11.
“FY10-11 recorded industry demand growth of 5.3%, the lowest in 10 years. This was primarily on account of the de-growth/subdued growth in various key cement consuming states by lower infrastructure spending, slowdown in realty sector, an extended monsoon and non-availability of railway wagons,” UltraTech said.
Net sales of the company during the final quarter of the last fiscal stood at Rs4,490 crore and profit before interest and tax at Rs904 crore.
On the outlook for the industry in the current fiscal, it said, “The cement industry is likely to grow more than 8.5% on the back of government initiatives in rural development, infrastructure and housing.”
“The pricing environment may remain challenging and with the impact of surplus capacity, margins continue to remain under pressure,” UltraTech added.
On future outlook, the company said that it continued to maintain a "healthy outlook" for overall growth in demand for cement in the national economy during the year
Mumbai: Steep escalation in input and transport costs pulled down cement major ACC's net profit to Rs350.17-crore in the first quarter of FY11 against Rs392.88-crore in the year-ago period, reports PTI.
Its profit before tax also declined to Rs481.21-crore in the reporting quarter as against Rs563.58-core in the year-ago period, the company said in a press release issued here.
Sales turnover, however, increased to Rs2,556.21-crore in the January-March 2011 quarter as against Rs2,240.33-crore in the year-ago period.
"While the company's operations benefited from better volumes, realisations remained challenged by steep escalations in input costs," the cement major said.
Manufacturing costs rose sharply as a result of increases in the cost of energy, fuel and raw materials like fly ash and slag. Coal became dearer in both the national and international markets while transport costs also shot up, it said.
On future outlook, the company said that it continued to maintain a "healthy outlook" for overall growth in demand for cement in the national economy during the year.
"With increased availability of cement from our newly-expanded plants at Wadi and Chanda, we expect the company will remain well-placed to benefit from this growth," the company said.