PUNE, March 30: Indian Seamless Steels and Alloys Ltd (ISSAL) at its recent extraordinary general meeting (EGM) approved the IDBI-approved scheme for financial restructuring. The scheme involves, along with waivers and interest at concessional rates, for the promoters to convert Rs 25 crore into equity shares, to bring in an additional Rs 16 crore by way of equity in 1997-98 and Rs 12 crore in the next two years.The measure will result in raising the promoters' stake to 56.31 per cent from the earlier 26.23 per cent.
ISSAL chairman BR Taneja said the Rs 12 crore which have to be brought in over the next two years could be raised abroad and the company was "open" to offers from foreign partners to take up to 20 per cent stake in ISSAL. The promoters would retain over 40 per cent stake, he said.
ISSAL had a turnover of Rs 178 crore and expects to touch Rs 240 crore in the current. It has targeted 10 per cent of turnover from exports over the next 20 months, with the first export consignment having beendespatched recently.
It may be recalled ISSAL had bought a high technology PSW rolling mill from Schloemann Siemag (SMS) of Germany which collapsed and had to be replaced by another from Morgad Schammer of Sweden. SMS offered a comprehensive compensation package to include customer support payment of Rs 24 crore, replacement of the PSW mill with a four stand continuous rolling mill at a concessional price and a soft loan of DM 40 million at an interest of 4 per cent for the first four years and a FIBOR minus 0.5 per cent thereafter for three years. ISSAL has already received DM 37 million between May-July 1997.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
