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

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Rose Zine

Rose Zine

EPW Research Foundation Vipul Dye-Chem VIPUL DYE-CHEM was originally incorporated with the objective of manufacturing, marketing and trading in dye intermediates and chemicals, but in 1984-85, the company shifted its marketing strategy and started concentrating on exports. The company is now a government recognised export house. It exports dye intermediates to Switzerland, Hong Kong, Germany, the US and Italy. The company plans to expand its manufacturing facilities. A major part of the manufactured intermediate dyes are to be exported to the US and Europe. The project is to be implemented in two phases. In the first phase the existing capacity of blue base is to be expanded from 24 mtpa to 120 mtpa. The project being located a notified backward area, the company is eligible for various benefits like a cash subsidy of Rs 15 lakh, and sales tax incentive up to 100 percent of capital investment for a period of seven years. The project has been appraised by Enarai Finance and the total cost has been estimated at Rs 371.5 lakh. To fund the project the company is entering the capital market with an issue of 14.2 lakh equity shares aggregating Rs 31 1.5 lakh including public issue of 8.7 lakh equity shares of Rs 10 each at a premium of Rs 10 per share aggregating Rs 174 lakh and firm allotment to NRls/OCBs. Indian Mutual Funds of 5.5 lakh equity shares of Rs 10 each at a premium of Rs 15 per share aggregating Rs 137.5 lakh. The promoters will subscribe to Rs 60 lakh constituting 17.44 per cent of the present issue at the same price as offered to the public. Their holding will be 57.58 per cent of the enhanced equity capital out of which 69 per cent is from bonus issue. The issue is slated to open on April 10 and is being jointly managed by Enarai Finance and Vijaya Bank.

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