Euro Ceramics public issue to open on Feb 7

Mumbai, Jan 31: Euro Ceramics Ltd is entering the capital market on Februray 7,2007 with an Initial Public Offering (IPO) of 56,21,500 equity shares of Rs ten each for cash at a premium to be decided a 100 per cent book building process.

Euro Ceramics Managing Director Nenshi L Shah told reporters, ''The price band for the issue has been fixed between Rs 150 and Rs 180 per share. The issue closes for subscription on February 13,2007. The equity shares of the company are proposed to be listed on BSE and NSE. The Company will use the issue proceeds to part finance the funds, required for setting up manufacturing facilities for Sanitary Ware Products at Bhachau,Kutch.'' The total cost of setting up of manufacturing facilities for Sanitary Ware Products is about Rs 77 crore.

The company has already signed a contract with Sacmi Hong Kong Ltd, a part of Sacmi, Italy for the supply of the plant and machinery. The issue funds will also be used for general corporate purpose and for meeting the IPO expenses. Euro Ceramics is currently engaged in manufacturing of Virtified Ceramic tiles and Aluminium Extruded Sections at its manufacturing located at Bhachau in Kutch District in Gujarat.

Currently,it has two lines for manufacturing vitrified ceramic tiles with total installed capacity of 79,971 Metric tonnes per annum (MTPA) whereas for aluminium extruded sections total installed capacity is of 1,800 MTPA.

In the Sanitary Ware domain, the Company proposes to have an installed capacity of 11,000 metric tonnes by 2007-08 with a proposed capacity utilisation of 80 per cent and the commercial production set to commence in October 2007.

The Company plans to set up retail outlets, which will be operated through franchisee agreements with various eligible parties. The Company is exporting Vitrified Ceramics Tiles in small quantities to the US,South Africa and the Middle East, Mr Shah added.

UNI