Nissan Copper to raise Rs 35 cr for expansion

New Delhi, Nov 29: Nissan Copper Ltd today said it will raise Rs 35 crore for enhancing production capacities of its copper pipes and bars at its Silvassa facility, of which Rs 25 crore will be raised through an IPO.

The remaining Rs 10 crore for the capacity expansion would funded by way of a term loan from State Bank of India.

The company plans to raise the production capacities of copper pipes from 1,200 tonnes per annum (tpa) to 2,400 tpa, copper section, mother tubes and wire bars from 2,400 tpa to 5,400 tpa and copper ignots and billet bars from 7,200 tpa to 10,800 tpa by the end of the current fiscal.

In addition, the company proposes to install two furnaces having a capacity of 750 kg each, one extrusion press of 5,000 tonnes capacity and also 2 lines for drawing of pipes.

''The current demand of copper products in the country is 35,000 tpa, but the production lies at 11,000 tpa. The excessive demand is met with imports basically from LG and Hitachi plants in Korea. The current expansion is to meet the domestic demand in a proper manner and to venture into exports too,'' company's Managing Director Ratan Mardia told reporters here today.

The price band for the equity shares to be issued on December 4 has been fixed at Rs 33 to Rs 39.

The issue which closes on December 8 will be done through a 100 per cent book building process.

Fifty per cent of the net issue shall be allocated on a proportionate basis to qualified institutional buyers, 10 per cent to the staff, 15 per cent to the HNIs and rest 35 per cent to the retail public.

The company's gross sales have gone up from Rs 17 crore in FY04 to Rs 88.67 crore for the year ended March 31, 2006. The net profit during the same period climbed up from Rs 52 lakhs to Rs 3.74 crore.

Nissan Copper is engaged in the manufacturing of copper ingots and coils , wire bars, strips, section, flats, billet bars, rods and copper pipes used in air conditioners, refrigerators, switch gear, panel, radiators, electrical appliances, connectors and heat exchangers.

UNI