Jaipur Polyspin Ltd (JPL) is tapping shareholders with a Rs 2.07-crore rights to part finance a Rs 6.82-crore project. The par offer is in the ratio of one equity share for every two shares held in the company. However, considering the fact that the current market price of the scrip is hovering in the region of Rs 5-7, the promoters may have to pick up a large chunk of unsubscribed shares. They have applied to the Sebi for picking up the additional shares in case of any short-fall in subscription.The company manufactures synthetic blended yarn of various counts for use in fabrics and hosiery products. During 1990, JPL undertook a balancing scheme and the current project is mainly to procure certain equipment for this scheme. The capital cost 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 projectis scheduled to go on stream by March 1998.
During fiscal 1997, although PAT of JPL rose by 14 per cent to Rs 56.7 lakh, total income dipped by Rs 1.72 crore to Rs 52.9 crore. On the other hand, export turnover increased by 17 per cent to Rs 10.4 crore. The rise in PAT was due to a 5.5 per cent drop in expenditure, 23 per cent fall in depreciation provisions and a marginal fall in interest outgo. EPS increased to Rs 1.37 in fiscal 1997 from Rs 1.20 in fiscal 1996.
The scrip is thinly traded on BSE and has remained below par for most part of 1997. The shares are listed at Jaipur, Mumbai, Delhi and Calcutta stock exchanges. Naga Dhunseri Group Ltd, the main promoter of the company, currently holds 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. There doesn't seem much prospect in the scrip.
Lead managed by Lodha Capital Markets Ltd, the issue closes on March 6.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
