NCL to come out with Rs 23.53 crore rights issue

NCL Industries Limited will soon come out with a Rs 23.53-crore rights issue. In this regard, NCL has filed a draft letter of offer with the Securities and Exchange Board of India (Sebi). The present rights issue is to part finance the company's growth plans costing Rs 68.22 crore.

The growth plans include capacity expansion in the boards division by establishing a 50,000-tonne per annum (TPA) plant in Himachal Pradesh, expansion of the clinker capacity from the existing 2.97 lakh TPA to 5.94 lakh TPA at Mattapalli as an energy efficiency and conservation (EEC) project, and setting up of a 3.15-lakh TPA capacity cement grinding unit at Kondapalli in Krishna district.

The plant at Himachal Pradesh would come up at Ponta Sahib and would manufacture cement-bonded wood particle boards. With the establishment of the Himachal plant, NCL plans to expand its market into the northern states and also expand the prefab activity in northern India.

The EEC project in the cement division will reduce the power consumption by 15 kWh and also increase the installed capacity of the cement plant from the existing 900 tonnes per day (TPD) to 1,500 TPD.

The company also proposes to manufacture PPC utilising fly-ash from Visakha Thermal Power Station (VTPS). With this objective, NCL is setting up a 1000 TPD grinding unit at Kondapalli, Vijayawada, informed a press release.