Hilton Metal Forging to enter the capital market

Mumbai, Apr 10: Hilton Forging Ltd, specialises in the manufacture of forged items for the oil and gas sector, proposes to enter the capital market on April 18 with a public issue of 54,50,000 equity shares of Rs 10 each at a price of Rs 70 per equity share, inclusive of premium aggregating Rs 38.15 crore.

Company MD Mr Yuvraj Singh Malhotra told reporters,"The project has been appraised by State Bank of Hyderabad (SBH) for Rs 48.15 crore. The plan includes expansion of its existing manufacturing capacity from 11,100 MTA to 24,900 MTA by installing additional plant and machinery at Gonsai in Wada Taluka of Thane district, setting up of a new building at a plot situated at Village Gonsai for in-house die shop/tool rooms, beam, forged valves and cam shaft for marine diesel and to meet working capital requirement".

Accordingly SBH has sanctioned a term loan of Rs 10 crore, the bank further disbursed Rs 1.12 crore as part of the term loan. The Company has already installed heat treatment plant and three tonnes drop forge hammer.

The Company present export forged components to various manufacturers and distributors in USA, UK, Europe and Middle East with export sales constituting 90 per cent of total sales during 2005-06. "The Company has a 16 MT Closed die Russian hammer which is highest capacity in Closed die forge hammer available in India and it can forge upto 750 kgs in closed Die," added Mr Malhotra.

UNI