LADAM GROUP: PROMISES: MEANT TO BE BROKEN!
Article Abstract:
Ladam Steels (LS), Spearhead Metals & Alloys (SMA) and Ladam Finance (LF) are part of the Ladam group promoted by BB Agarwal and Sumesh Agarwal, a father and son combine. LS is engaged in steel rolling with an installed capacity of 11,000 tonnes per annum (tpa). It planned to expand its capacity by 31,000 tpa at a cost of Rs81.3 million. It floated a public issue at par to raise Rs50.5 million in February 1993. It projected turnover and net profit of Rs226.8 million and Rs18.4 million respectively in the first year of expanded operations, ended March 1994. It projected a gross income of Rs252 million and net profit of Rs15.5 million for year ended March 1995. It had projected turnover and net profit of Rs302.4 million and Rs19.1 million respectively for 1995-96. It commenced operations on schedule and posted sales of Rs133.1 million and net profit of Rs14.4 million for 1993-94. It paid dividend of 18 percent for 1993-94 (against a projected 15 percent). It posted sales of Rs264.3 million and net profit of Rs11.5 million for 1994-95. It posted sales of Rs302.4 million and net profit of Rs19.1 million for 1995-96. SMA went public in February 1994. It was trading steel strips, coils and steel scraps since 1991. It planned to set up a plant for manufacture of 20,000 tpa cold-rolled cold annealed strips/coils and 5,000 tpa of gold stainless steel at Shahpur in Thane district. The project was estimated to cost Rs109.4 million, with an equity component of Rs99.4 million. It was scheduled to commence commercial production by April 1994. It was projected to post a turnover of Rs479.1 million and a net profit of Rs51.6 million for year ended March 1995. It projected to pay a dividend of 12 percent for 1994-95. It projected a gross income of Rs633.1 million and a net profit of Rs68.2 million for 1995-96. It projected to pay a dividend of 20 percent for 1995-96 and 20 percent for 1996-97. The group has not completed the project as yet. It recorded a trading income of Rs51.2 million and a net profit of Rs60,000 for 1994-95. It recorded a trading income of Rs13.7 million and a profit of Rs70,000 for 1995-96. Its trading income declined to Rs2.5 million and profit to Rs20,000 in 1996- 97. LF hit the capital market in February 1995. LF is engaged in investments in real estate and securities of listed companies since 1992. It raised Rs57 million at a premium of Rs5 per share. It posted a profit of Rs25,000 on a gross income of Rs1.3 million in 1993-94. It had projected a net profit of Rs7.6 million on a gross income of Rs11.7 million for 1994-95. It had projected a net profit of Rs45.8 million on an income of Rs63.8 million and a dividend of 20 percent for 1995-96. It earned a net profit of Rs0.1 million on a gross income of Rs2.8 million for 1995-96. The Ladam group has raised a total of Rs152.8 million through equity shares of three companies. Ladam group could not fulfil any of the pre-issue promises. Its scrips are traded irregularly in the secondary market. (rk)
Comment:
Ladam Steels (LS), Spearhead Metals & Alloys (SMA) and Ladam Finance (LF) are part of the Ladam group promoted by BB Agarwal and Sumesh Agarwal, a father and son combine.
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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ALACRITY GROUP: BUILDING CASTLES IN THE AIR
Article Abstract:
Alacrity Foundations Private Limited (AFPL) of the Alacrity group has failed to fulfil the promises made to its shareholders. Public investment in the company has been eroded and investors have lost interest in the scrip. Its performance has fallen short of projections since 1993-94. Its core business is housing and it has three other divisions-electronics, healthcare and education. Alacrity Housing Ltd (AHL) floated a public issue for Rs48 million in November 1992. The issue was meant to finance the acquisition of buildings division of AFPL. AHL posted a net profit of Rs12.8 million in 1996-97 against a projected net profit of Rs45.3 million. In 1997-98, its net profit declined to Rs3.14 million while income fell to Rs411.02 million. Its financial overheads increased to Rs34.07 million and sundry debts increased to Rs212.10 million. AHL posted a net profit of Rs2.8 million on an income of Rs148.2 million in the first half of 1998- 99. Its electronics division, Alacrity Electronics Ltd floated a public issue at par to mobilise Rs22.5 million in December 1993. AEL posted a net profit of Rs2 million in 1997-98 against a projected net profit of Rs20.8 million. It recorded a net profit of Rs2.5 million on sales of Rs50.8 million in the first half of 1998-99. (rk)(vr)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1999
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