Bihar Caustic and Chemicals Ltd (BCCL), a joint venture between the Bihar government and the Aditya Birla group, is coming out with a 2:1 rights issue to mop up Rs 15.60 crore.
The issue, which was supposed to hit the market in 2000, is designed to part finance the 30 mw coal-based captive power plant along with allied infrastructure facilities at its caustic soda unit at Garhwa Road in Jharkhand.
BCCL offers 1.56 crore equity shares of Rs 10 each for cash at par aggregating Rs 15.50 crore on rights basis in the ratio of two equity shares for very one held on January 29. The offer will remain open for two months beginning February 18. The issue is not underwritten.
The company failed to introduce the rights offer in 2000 owing to depressed market conditions which, in turn, forced the company to defer investments on some items.
The time over-run has saved money as the project cost was reduced by nearly Rs 6 crore owing to the Cenvat benefit to the company and reduction in cost of some items.
Industrial Development Bank of India (IDBI) appraised the project cost at Rs 152 crore in 1998, which came down to Rs 146 crore now. The company has invested Rs 126.37 crore till November 2002.
As per the initial estimates, Rs 11.40 crore was expected to be funded by internal accruals and Rs 100 crore by term loan and the promoters promised to pump in unsecured loans of Rs 25 crore. IDBI sanctioned term loans of Rs 50 crore, while IFCI and UTI promised to pay Rs 25 crore each.
Incorporated in 1976 as a joint venture between the Birlas and the Bihar government, the company later went to the BIFR in 1986 net owing to continuous loss on account of high cost of power, low sales realisation and low chlorine and hydrochloric acid utilisation.
Hindalco holds 20 per cent stake in the company, while Pilani Investment and Industries Corporation holds 5 per cent stake.
