Insecticides India is in talks with private equity firms and other institutional investors to raise funds
Insecticides India plans to raise about Rs70 crore through qualified institutional placement of shares or a private equity infusion for funding its proposed capacity expansion programme, which includes setting up a new plant in Rajasthan.
The company, which has five plants in Rajasthan, Jammu and Gujarat, is in talks with private equity (PE) firms and other institutional investors to raise funds.
"We are planning to increase the capacity of our existing plants and also set up a new plant in Rajasthan. This will involve an investment of Rs60-Rs70 crore," Insecticides India Ltd Managing Director Rajesh Aggarwal told PTI.
The company is looking to finance the expansion plans through Qualified Institutional Placement (QIP) or private equity funding, he said.
Aggarwal said the company would issue fresh shares to raise funds, which would dilute the promoter's stake.
"Promoters have about a 75% stake in the company. We would like to keep a two-thirds stake in it," he added.
Aggarwal said the company has just completed one round of expansion at an outlay of Rs80 crore with internal accruals and "we do not want to put more pressure on our cash flow".
Under the proposed expansion programme, the company would ramp up its formulations production capacity to 5 lakh tonnes per annum from the current 3.5 lakh tonnes, while its technicals (basic chemicals) production capacity would be increased to 22,000 tonnes from 12,000 tonnes at present.
Insecticides India is scouting for land for its third plant in Rajasthan, Aggarwal said.
The company has a presence in almost all parts of the country. Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu contribute about 40% to the company's turnover, which stood at nearly Rs480 crore last fiscal. Its net profit was Rs32.21 crore in the 2010-11 fiscal.
Insecticide India's turnover grew by 20 per cent, while its net profit rose by 14 per cent in the 2010-11 fiscal vis-a-vis the previous year.
About one-third of the company's revenues come from four products--Monocil, Lethal, Victor and Thimet. The company had recently acquired insecticide brand Monocil from Nocil Ltd.
IFFCO’s Paradip unit has received two prestigious awards for “Excellence in Energy Conservation” and “Corporate Social Responsibility’’
Fertiliser major IFFCO’s Paradip unit in Orissa has won two prestigious awards for “Excellence in Energy Conservation” and “Corporate Social Responsibility’’.
“Excellent Energy Efficient Unit” award under ‘National Energy Management Award-2011’ was presented at a function organised by the Confederation of Indian Industry (CII), Hyderabad, IFFCO sources said in Bhubaneswar today.
The award was presented by the Director General of the Bureau of Energy Efficiency, Mr Ajay Mathur at a ceremony held on 25 August 2011 at Hyderabad. It was received by Mr MR Patel, Sr executive director of IFFCO, Paradip unit.
Besides, IFFCO’s Paradip unit was awarded by Rotary Club of Bhubaneswar for significant contribution in CSR activities. A trophy was presented on 25 August at the award giving ceremony in Bhubaneswar.
Besides, the IFFCO unit also received “11th Global Greentech Environment Excellence Award 2010—Silver” for its outstanding achievement in environment management in fertiliser sector.
PME Power expects to mop up about Rs300-400 crore from the offering
Electrical transformer maker PME Power Solutions plans to raise Rs300-Rs400 crore through an initial share sale.
The firm has filed preliminary papers with market regulator SEBI for the IPO of more than 1.14 crore equity shares that would constitute 25% of PME Power's fully-diluted post issue paid-up share capital. PME Power expects to mop up about Rs300-400 crore from the offering, according to market sources.
The proceeds would be utilised for making investments in manufacturing facilities, expansion activities, for repaying debt and general corporate purposes.
In 2010-11, PME had recorded a profit of Rs75.18 crore on revenues of Rs415.72 crore. About 75% of the company's revenues come from the African region.
PME has also received an EPC contract in Zambia, which is worth about USD 64 million. The order has been awarded by Zambian power utility firm ZESCO.
The entity is also exploring markets for Amorphous Metal Distribution Transformers (AMDT) in Zambia and Zimbabwe.