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

 IN THE CAPITAL MARKET Nuchem Plastics NUCHEM PLASTICS,, engaged in the manufacture of formaldehyde, moulding powders, resins, hexamine, tools, hydraulic presses and hacksaw blades, is entering the capital market on September 3, with a public issue of 55 lakh equity shares of Rs 10 each at par. The purpose of the issue is to part finance the setting up of a modern sophisticated and advanced technology project with an installed capacity of 39,000 tonnes per annum of density fibre board. The estimated cost of the project is Rs 43.85 crore. This is proposed to be financed as follows: public issue Rs 5.50 crore, rights issue Rs 3.67 crore, internal accruals Rs 4.96 crore, equity participation by the Swedish collaborators Rs 0.24 crore, central subsidy Rs 0.15 crore, foreign exchange loan Rs 4.63 crore and rupee loan Rs 24.70 crore. The plant is located at Tohana, about 250 km from Delhi. The company has entered into collaboration with Sunds Defibrator AB of Sweden for the supply of plant and machinery, supervision in the erection and commissioning of the plant and for training workers. The medium density boards will find applications in the housing sector to make furniture, partitions, doors and window frames and TV cabinets. The company will market the product under the brand name 'Nuwud'. Marketing tie- ups have already been made with a member of dealers all over India. The unit is expected to commence production and marketing in the last quarter of 1990. The company reported a turnover of Rs 28 38 crore during the year ended March 31, 1990 as against Rs 24,21 crore in the preceding year. It earned a net profit of Rs 1.96 crore during 1989-90. The equity share of the company is currently quoted at Rs 25.

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