NEW DELHI, February 5: The promoters of Jaipur Polyspin may have to hike their stake after the present rights issue since the offer comes at par while the scrip is trading at Rs 5 on the Mumbai Stock Exchange. The par offer from the Dhunseri group company is in the ratio of one equity share for every two shares held.The promoters have decided to pick up the unsubscribed portion in case other shareholders in the company renounce their rights. In a worst case scenario, the promoters may have to pump in an additional Rs 1.52 crore, which would increase their stake by more than 16 per cent to approximately 41 per cent.
Naga Dhunseri Group Ltd, the main promoters of Jaipur Polyspin, and its associates currently hold 25.02 per cent of the Rs 4.14 crore equity. While the public holding in the company is at 48.53 per cent, FIs, banks and mutual funds hold close to 25 per cent.
The scrip is marked by sporadic trading on the BSE with the price mostly remaining below par for a major part of 1997. Currently, thescrip is trading at Rs 5, just half the offer price.
Established in 1980, Jaipur Polyspin manufactures synthetic blended yarn. The company has embarked on a Rs 6.82 crore project to procure certain equipment for the balancing scheme which was started in 1990. The capital cost of the equipment is pegged at Rs 4.32 crore while Rs 2.43 crore is earmarked as margin money for working capital. Apart from the rights issue, the company has finalised term loans of Rs 3 crore from IDBI. The balance amount of Rs 1.75 crore is through internal accruals. The project is scheduled to be completed by the end of March 1998.
In fiscal 1997, although the net profit of the company increased by 14 per cent to Rs 56.7 lakh over the previous year, its total income dipped by Rs 1.72 crore to Rs 52.9 crore. On the other hand, its export turnover increased by 17 per cent to Rs 10.4 crore. Increase in net profit came from a 5.5 per cent drop in expenditure, 23 per cent fall in depreciation provisions and a marginal drop ininterest outgo.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
