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

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Poised far Bigger Growth

Poised far Bigger Growth Hansavivek RELIANCE TEXTILE INDUSTRIES, which has achieved spectacular growth in recent years, is now taking bigger strides in this direction. It has under- taken a project for manufacture of 10,000 tonnes of polyester filament yarn per annum. The plant is being located in the 'backward' area of Patalganga in Maharashtra. The world renowned US firm, of EI Du Pont De Nemours and Company, will provide technical collaboration. Total cost of the project is estimated at Rs 78 crore. Necessary financial arrangements, including foreign currency loan of R-; 28 crore, have been in principle syndicated, A part of the finance would be raised by a 'rights' issue of equity shares on a one*for-six basis, at a premium of Rs 15 per share, around June 1982; and a Rs 24-crore secured convertible debenture issue is to be offered to the public thereafter. A sum of Rs 10.21 crore is expected to come from the company's internal accruals. The new debentures will be of Rs 125 each, and carry such rate of interest as may be permitted by the Controller of Capi tal Issues. Each debenture will, subject to government approval, carry a right to acquire one equity share in the company at a premium of Rs 15 per share. This right would be exercisable during June 1982. One-fifth of the value of the debenture would be redeemed at that time and could be adjusted towards the price of the equity share, In case the company makes a bonus Issue before the end of August 1982, there would be proportionate increase in the number of equity shares to be offered and reduction in premium pro rata. Apart from the new project, the company would be spending about Rs 30 crore this year on approved schemes of expansion and modernisation for which it has made necessary financial arrangements.

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