BPSL launches "Follow on Public Offer"
Hyderabad, Mar 22 (UNI) Birla Power Solutions Ltd (BPSL), a Yash Birla Group company and one of the largest provider of power solutions today announced that it proposes to set up two new plants in Uthranchal and Himachal Pradesh to manufacture LPG and CNG gensets, solar inverters and engines at a cost of Rs 50.4 crore.
Yash Birla Group Finance Director PVR Murthy said BPSL plans to aggressively expand its market share by increasing the capacities of its existing products and also going in for backward integration by seting up a plant for manufacturing of Acoustic Hoods, which was presently outsourced.
''The company is also proposing to manufacture high capacity gensets, LPG and CNG gensets, inverters and Engineers which will have a good market in the near future.'' Its ''Follow on Public Offer'' of 120,00,000 equity shares of Rs 10 each for cash at a premium of Rs 32 per share, aggregating to Rs 5040 lakh. The issue price of Rs 42 per share is 42 times the face value, opens for subscription on March 24, 2006 and closes on March 29, 2006.
The proceeds of the issue will be deployed to expand existing capacities to finance the setting up of a new plant for manufacturing LPG and CNG gensets, inverters, engines and acoustic hoods. Part of the proceeds will also be used to meet the margin money for working capital requirement. The total cost of the project Rs 5040.00 lakh is proposed to be funded through the issue proceeds.
The company, which has the expertise of manufacturing two stroke as well as four stroke engines, is presently producing a wide range of products like generators, inverters, alternators, multi-purpose enginers, waterpumps, appliances like sprayer and grass cutter, among other things. ''It is one of the first few companies to roll out Self Start Gensets and has recently became the first company to launch emission complaint generators under the brand name-''Birla Ecogen,'' he claimed.
BPSL posted a turnover of Rs 9,127.05 lakh for the year ended September 2005 and net profit after tax of Rs 356.27 lakh. The company has consistently paid dividend for the last five years and has paid a final dividend of eight per cent for the year ended September 2005.
The existing equity shares of the company are listed on the Bombay Stock Exchange Limited and plans to be listed on the National Stock Exchange after the completion by the follow-up Public Issue.
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