Solar Explosives to expand capacity for bulk manufacturing

Mumbai, Mar 2 (UNI) Explosive material and accessories manufacturer, Solar Explosives will set up support and transfer plants for bulk explosives in the Eastern region of the nation and diversify the overseas markets at an estimated cost of Rs 82 crore.

While Rs 48 crore would be spent for setting up units for manufacture of bulk explosives, cartridge explosives and magazines at Asansol in West Bengal, Talcher in Orissa and Ramgarh in Jharkhand, the company would be exploring new overseas markets, mainly in Africa, by setting up subsidiaries for production of explosives materials and accessories.

The company, which makes explosives for mining and construction companies, is a part of Solar group headed by Satyanarayan Nuwal from Nagpur, who set up first manufacturing base in and around Nagpur over a total area of 350 acres. The group has three subsidiaries--Solar Component, Economic Explosives and Solar Capital.

To finance the expanded activities of the company, Mr Nuwal said, Solar Explosives will raise about Rs 80 to 83 crore from the capital market by offering 44,00,000 equity shares of Rs 10 each through cent per cent book building process.

The issue, with a price band of Rs 170 to Rs 190 per share, will open for subscription from March 9 to 13. In post-issue, the holdings of the promoters will come down by 25 per cent.

UNI GC GK AG1558