SIL to raise Rs 50 cr to part-finance expansion of Uttaranchal plant

New Delhi, June 23 (UNI) Shirdi Industries Ltd (SIL), manufacturers of interior furnishing products, today said it will enter the capital market with 6,500,000 equity shares, to raise Rs 50 crore to part-finance its expansion project in Uttaranchal.

The equity shares at Rs 10 each will be in a price band of Rs 69 to Rs 78 per share. The issue opens for subscription on June 29 and closes on July 5, 2006. Allianz Securities Ltd is the Book Running Lead Manager for the issue.

The estimated total cost of the project, which is currently under implementation, is Rs 127.4 crore, and it will commence by December 2006.

The company has tied up with Union Bank and UCO Bank for a substantial portion of the loan aggregating Rs 56.5 crore.

SIL is also setting up additional capacities for the manufactures of medium density fiberboards, particle boards (both plain and pre-laminated), besides setting up capacities for production of flooring, door-skins, and laminated door and furniture components.

After expansion, SIL's installed capacity will be 48,58500 sq mtrs per annum of the MDF Board and 50,52,333 sq mtrs per annum of the Particle Board.

Of this, the capacity for the Pre-laminated MDF and PB would be 10,70,000 and 24,10,000 sq mtrs a year respectively.

SIL reported a net profit of Rs 4.5 crore, for the year ended March 31, 2006, and a total income of Rs 52.78 crore for the same period, up from Rs 40.3 crore last year.

After the issue, the holding of promoters will get diluted to 65.38 per cent from the current holding of 88.43 per cent.

The company has a manufacturing unit in Mumbai spread across 6,000 sq ft. The 25-acre unit in Uttaranchal, has a six lakh sq ft production area.

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