Zenith Birla to hit the mkt with follow-on public issue

Chennai, Oct 12: Zenith Birla (India Limited), a Yash Birla Group Company, today announced its follow on public offer of 2,38,18,182 equity shares to raise Rs 131 crore for setting up a new mechanical tube manufacturing plant for automotive applications.

The share will be offered at a face value of Rs ten each for cash at a premium of Rs 45 per share. The issue price of Rs 55 was 5.5 times the face value.

The issue would open on October 16 and close on October 20, Senior Company Executives Tushar Dey and Lalit A Rungta told reporters here.

The offer also comprised promoters' contribution of 45,45,455 equity shares aggregating to Rs 25 crore.

About Rs 97 crore of the sum raised from the issue would be invested in the new manufacturing plant at Khopoli near Navi Mumbai.

The new plant would come up near the existing facility manufacturing standard pipes for construction, transport, oil, water and gas sectors.

With an installed capacity of 60,000 metric tonne per annum, the plant would begin commercial production by December next year.

The balance issue fund would be used for meeting working capital and public issue expenditure.

UNI