Financial Daily from THE HINDU group of publications
Thursday, Jul 01, 2004
Markets - Stocks
Century Ply gets ready for BSE, NSE listing
Kolkata , June 30
THE city-based Century Plyboards (India) Ltd, a major player in the plywood sector, has applied for BSE and NSE listing after expanding its capital base through rights and bonus issues.
The promoters of the company have reduced their holding from around 88 per cent to below 75 per cent.
All these steps were taken to make the company eligible for a listing in the two premier bourses of the country.
In May, the company issued 19.5 lakh equity shares of Rs 10 each at a premium of Rs 30 per share.
It was a rights issue in the ratio of two shares for every five held. Century Plyboards raised Rs 7.8 crore from the issue.
Last week, the company decided to make a bonus issue in the ratio of 1:2. The board and shareholders have already approved the decision.
According to Mr Sajjan Bhajanka, Managing Director, the paid-up capital of the company was Rs 5 crore prior to these issues.
"After the rights issue, our paid-up capital base increased to Rs 7 crore. Now, after the bonus, it will be over Rs 10 crore. We have also reduced our holding in the company to less than 75 per cent."
Currently, the company is listed in the Calcutta, Delhi, and Ahmedabad stock exchanges.
According to Mr. Bhajanka, the company will be delisted from these exchanges after the NSE and BSE listings.
For the year ended March 31, 2004 Century Plyboards recorded a rise in turnover at Rs 128 crore from Rs 116.23 crore the previous year. Net profit increased by 61 per cent to Rs 7.30 crore from Rs 4.53 crore.
During the current fiscal, it hopes to register a turnover of Rs 175 crore and cross the Rs 200-crore mark in 2005-06.
The company has embarked on an expansion project under which it will set up a laminates and pre-laminated panel production unit at a cost of Rs 38 crore. The first phase of the project has already been commissioned.
The project was funded through the rights issue, internal accrual, and loans from banks and financial institutions.
Although another major plywood producer is contemplating forward integration and is entering the branded furniture business, Mr Bhajanka ruled out any such possibility for Century Plyboards in the near future.
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