JINDAL STRIPS LTD yesterday informed the Bombay Stock Exchange that the Board of Directors of the company has decided to "issue and allot in the course of international offerings in one or more foreign markets, equity shares and/or any securities to foreign investors in the International or domestic markets, (whether institutions and/or incorporated bodies and/or individuals or otherwise) and which, upon conversion of all securities so issued or allotted, could give rise to the issue of equity shares of the aggregate face value equivalent to Rs.15 crore and such issue and allotment be made at such time or times in such tranche or tranches, at such price or prices at a discount or premium to market price and in such manner as may be considered appropriate."
Meanwhile, the company will present a reworked scheme of arrangement for the sale of its cold rolling unit atVasind to Andal Iron and Steel Co (JISCO), to financial institutions in about two months. The reworked scheme would be designed to enable JISCO to take on the unit on a deferred payment arrangement.
The sale of the Vasind unit to JISCO was part of Jindal Strip's restructuring procedure, whereby, it had planned to sell off its Vasind unit to JISCO at a gross consideration of Rs 75 crore and hive off its power unit into a separate company, Jindal Steel and Power, and focus only on stainless steel.
However, financial institutions have objected to JISCO taking on the Vasind unit, since the company is already in trouble financially on account of the slowdown in the steel industry. in its net profit to Rs 1 crore in the quarter ended June 1999 of the current financial year 1999-2000 against Rs 15 crore in the corresponding period last year. Gross profit declined to Rs 17 crore in the period under review compared to Rs 31 crore in the corresponding period last year. In the quarter ended Jue 1999, net sales at Rs 360 crore, indicating a 7.6 per cent decline over Rs 390 crore in the corresponding period last year.">