Four top investment banks _ Goldman Sachs, DSP Merrill Lynch, HSBC Capital Markets and Lazard Credit Capital _ have made presentations to public sector Balmer Lawrie & Co Ltd for its proposed business and financial restructuring.
Speaking to Business Standard, C V Chandrasekharan, managing director, Balmer Lawrie, said the presentations are currently under evaluation and would be shortlisted by the Central government.
As a part of the proposed business restructuring, the company could consider a public issue of shares in the near future, said Chandrasekharan. The investment bank, which would be shortlisted, would work out the modalities of the proposed issue, if any, he added.
He said a public issue at this stage would help to generate the much-needed funds for the company's various ongoing expansion and modernisation projects.
Balmer Lawrie & Company is the subsidiary of the petroleum products and marketing firm IBP Company in which the government holds 59.58 per cent.
During 1997-98, the company posted a net profit of Rs 16.41 crore, reflecting a growth of 15.48 per cent. The turnover has also been continually growing by 15 per cent. Last year the company was also declared a mini-ratna by the government providing it with greater operational autonomy. It has also been upgraded from an export house to a trading house during the year.
Balmer Lawrie has also been trying to formulate a plan to restructure/reorganise its associate company Cochin Refineries-Balmer Lawrie. The board of directors of Cochin Refineries has proposed to merge joint venture Cochin Refineries-Balmer Lawrie Ltd (CRBL), with Cochin Refineries, with a tentative swap ratio of one Cochin Refineries share in exchange for 26 shares of CRBL. The financial issues will be finalised with the other major promoter of CRBL, Balmer Lawrie & Co.
Speaking after the company's 81st AGM yesterday, S N Mathur, chairman, said as part of the turnaround efforts it would also be undertaking a restructuring of all its joint ventures.
The company plans to re-orient its businesses towards more project-related activities and exports as part of its consolidation initiative.
Mathur said during the last financial year the market demand for petroleum products was on the lower side and this had affected the performance of the company. However, he said, the demand was expected to pick up in October.
Also replying to shareholders demands for a bonus, Mathur said the company was in a position to declare a bonus and had plans to do so shortly.
