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Zuari Agro seeks shareholders' nod to raise up to Rs 755 cr for revamp project

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Press Trust of India New Delhi
Last Updated : Jul 05 2018 | 12:30 PM IST

Zuari Agro Chemicals has sought shareholders' nod to raise up to Rs 755 crore through various modes to mainly fund revamp of its ammonia-urea plants.

It proposes to raise 32 million Euro (approx Rs 255 crore) by Foreign Currency Convertible Bonds (FCCBs) to support the revamp project.

The company said it plans to raise up to Rs 500 crore by issuing Compulsory Convertible Debentures (CCDs) via rights issue to existing investors for the revamp and general corporate purposes.

"The company is in process of implementing the integrated revamp of ammonia-urea-steam, power generation facilities...at an investment of Rs 1,387 crore," Zuari Agro said in a postal ballot notice to shareholders.

Last year, Zuari Agro announced plans for revamp of ammonia-urea plants at a cost of over Rs 1,300 crore.

Zuari Agro has an integrated facility in Goa with an annual installed capacity of 9,46,000 tonne of fertilisers.

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The entire manufacturing facility comprises four separate plants, namely ammonia, urea, NPK A and NPK B.

Saron Poddar-led Zuari group had acquired a controlling stake in Vijay Mallya's UB group firm Mangalore Chemicals & Fertilisers.

Shares of Zuari Agro were trading 0.75 per cent up at Rs 347.35 apiece on BSE.

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First Published: Jul 05 2018 | 12:30 PM IST

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