MODERN GROUP - FOREVER RESTRUCTURING

Article Abstract:

The Modern group is promoted by HS Ranka. It has raised 18 issues between 1980 and 1995. It has made 9 public issues, 5 rights issues and 4 rights-cum-public issues. In the 1980s, it raised Rs400 million and in the 1990s, Rs5,000 million. Modern Denim, earlier called Modern Suiting, came out with equity shares at a premium of Rs12 in 1990-91. In 1994, it hit the market again with an issue at a premium of Rs20. In 1992, Modern Woollen issued shares at a premium of Rs20. Modern Threads issued shares at a premium of Rs30 in 1995. Modern Syntex floated a public issue in 1994 to part-finance a Rs5,130 million polyester filament yarn/polyester chips project. It commissioned one-third of the proposed capacity. The group has raised Rs5,400 million from the public through equity and fully convertible debentures. It has mobilised Rs11,950 million through loans from banks and financial institutions. The total amount raised is Rs17,350 million and its asset base was 16,273 million in 1996-97. About Rs1,100 million has been used for increasing the promoter's stake in the group. The 5 companies of the group which went public incurred losses in 1997-98. The investment of Rs5,410 million by the public in the Modern group has been reduced to Rs447 million at the current market rates. The investors have lost Rs4,900 million in the group - 91 percent of the capital cost. (rk) >EN

Comment:

Promoted by HS Ranka and has raised 18 issues between 1980 and 1995, co profile

Textile Mill Products, Textile Mills, Modern Group (India)

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WELSPUN GROUP HOUSE: 'CROWN PRINCE' OF TERRY TOWELS FAILS TO CHARM INVESTORS

Article Abstract:

The terry towels manufacturer, Welspun India Ltd (WIL), the flagship company of the Welspun Group has not generated any returns for its investors. It has an installed capacity of 6,000 tonnes per annum. The Welspun Group had mobilised about Rs950 million from investors by public issue and rights issues from 1990 to February 1997. The investment is worth only Rs440 million now. About 53 percent of the investment has been depleted. Capital loss for the investors work out to 18 percent per annum. Welspun Gujarat Stahl Rohren (WGSR), Welspun Syntex Ltd (WSL) and WIL have assets which are higher than the equity collected from the public. WSL is currently floating a 4.3 million convertible debenture issue of Rs100 each at 17.5 percent and/or 43 million optionally convertible cumulative preference shares of Rs10 each aggregating to Rs430 million. WSL floated a rights issue in November 1994 for mobilising Rs67.8 million at a premium of Rs15 per share. It paid a dividend of 21 percent against a projected 40 percent in 1996-97. WGSR floated an equity issue of Rs520 million at par in January 1997. The issue had a poor response from the investors. Welspun Finance Ltd, a group company did not pay dividend in 1996-97. (rk) >EN

Comment:

Indian terry towels manufacturer, the flagship company of the Welspun Group, has not generated any returns for its investors

Other Household Textile Product Mills, Terry Woven Towels, Towels, Terry toweling, Welspun India Ltd.

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SHREE KRISHNA GROUP

Article Abstract:

The Shree Krishna Group of Mumbai has 3 listed companies which contribute Rs12,000 million of sales to the group. Its companies are Shree Krishna Petro Yarns (SKPY), Shree Krishna Polyester (SKP) and Krishna Texport Industries (KTI). The are engaged in spinning, knitting and processing. These 3 public companies have invested in each other's equity of Rs346 million. The investors of SKPY and SKP have incurred a loss of 23 percent in their capital (Rs2,218.9 million) as per the market price of the scrip on May 29, 1998. The shares of KTI are not traded at the bourses. The earning per share of the 3 companies are Rs15-20. KTI's authorised capital has been hiked by 1,030 percent - from Rs115 million to Rs1,300 million. SKPY's equity has been raised by 344 percent - from Rs450 million to Rs2,000 million. SKP's equity has been increased by 135 percent - from Rs850 million to Rs2,000 million. (rk) >EN

Comment:

Has 3 cos, namely Shree Krishna Petro Yarns, Shree Krishna Polyester & Krishna Texport Inds, which give Rs12,000 mil of sales

Fiber, Yarn, and Thread Mills, Yarn & Thread Mills, Textile factories, Shree Krishna Group

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