Mumbai, June 27: The Chennai-based Shasun Chemicals and Drugs is seeking a fresh mandate for a private placement of equity shares during its forthcoming annual general meeting in August 2000.The shareholder's approval sought earlier for the placement of 10 lakh equity shares of Rs 10 each at a price of Rs 229 could not be marketed, finance director, S Vimal Kumar told The Financial Express in an e-mailed response. Under the Sebi regulations, the private placement of share must be completed within 90 days of receiving the approval from the shareholders.
The company feels that raising long-term loan at a cheaper rate is more attractive at this juncture, Kumar said. The private placement of shares at the current rate would not reflect the true value of the share and Shasun hopes that the share price may firm up by August or September when the company could issue shares at a reasonable price on preferential basis, Kumar added.
The company has repaid long-term loans of Rs 14 crore during 1999-2000, which was instrumental in bringing down the interest cost. The company plans to repay loans amounting to Rs 13 crore during the current year.
Shasun will, however, go for fresh debt funding of Rs 15 crore during the year to finance its various projects with average interest cost between 12 to 12.8 per cent, Kumar revealed.
The company is also increasing the Ibuprofen capacity to 300 mt per month at a cost of Rs 16.50 crore which includes modernisation and automation of the pharma section.
It would be funded by a long term loan of Rs 10 crore. The pharma excipient HPMCP to be manufactured at the Cuddalore plant along with upgradation of R&D would be financed through a long term-loan of Rs 5 crore from Exim Bank.
The HCMCP plant will have an initial capacity of 100 MT per annum at a projected outlay of Rs three crore, inclusive of the licence fee, Kumar indicated.
Capacity expansion ofRanitidine completed
Shasun Chemicals & Drugs has completed the capacity expansion of anti-ulcer drug Ranitidine from the existing 22 mt to 33 mt per month in May 2000. The company has also increased the capacity of Ranitidine intermediate viz.NMSM from 18 mt to 30 mt per month at a total cost of Rs 8 crore funded through internal accruals.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.