Monday, February 15, 2010

Jayshree Chemicals- Attractive Rights Issue

Jayshree Chemicals Limited a S. K. Bangur Group Company is making a Rights Issue of 2,39,94,374 Equity Shares of Rs.10 each for cash at a premium of Rs.5 per Equity Share aggregating to Rs.3599.16 lacs.   The issue is attractively priced at Rs.15 per share against a market price of Rs.34.95 (as on 11th February, 2010).   The Rights Issue is being made to the present equity shareholders of the company in the ratio of 9 Equity Shares for every 2 Equity Shares held.  The company has fixed 18th February, 2010 as the record date for the entitlement of Rights shares.

The Company is doubling the capacity incorporating state-of-the-art Membrane Cell Technology; a green technology at a total cost of Rs. 150 crore at its existing plant at Jayshree in Ganjam district of Orissa   To part finance the Expansion cum Modernisation Project this issue is being made. A consortium of banks have sanctioned term loans aggregating to Rs.90 crore while the balance amount will be met by way of proceeds of the rights issue, internal accruals and excise credit available to the company.

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