TRIDENT GROUP: ISSUE AFTER ISSUE

Article Abstract:

The Trident group of Punjab set up its fifth firm - Abhishek Spinfab Corporation Ltd (ASEL) - in April 1998 with an equity issue of Rs198.6 million at par. The group's flagship company - Varinder Agro Chemicals Ltd (VACL) - has raised around Rs386 million through 3 public issues and 3 rights issues. On the eve of its capital issues, VACL's performance would improve and post- issue, the performance would be dismal. VACL now has a production capacity of 1.32 lakh tonnes per annum (tpa) of single superphosphate, 1 lakh tpa of sulphuric acid and 27,918 tpa of printing and writing paper. It is implementing a project for caustic soda recovery and co-generation of power involving an investment of Rs539.4 million. This will be financed by term loans of Rs350 million, unsecured loans of Rs30 million and internal accruals of Rs159.4 million. Another group company, Trident Alco-Chem Ltd (TACL), tapped the market in November 1990. It is now undertaking an expansion-cum-diversification scheme to raise its acetic acid production capacity to 13,550 tpa and manufacture 4,500 tpa of acetic anhydride and 2,100 tpa of p- amino phenol. The total cost of the scheme is Rs162.8 million, of which Rs107 million will be funded through term loans, Rs11.3 million from internal accruals and Rs34.5 million through a rights issue. Another of its companies - Ganpati International Corporation (GIC) - also floated an issue of Rs8.6 million at par in October 1991. Later, it was merged with Abhishek Industrial Corporation Ltd (AICL). AICL is listed on the Ludhiana Stock Exchange but it has not been traded at all during 1998. The group's company - Abhishek Industries Ltd (AIL) - tapped the market in October 1992. AIL is expanding its capacity of 32,400 spindles by 43,392 spindles at a cost of Rs950 million. This is proposed to be funded through a foreign currency loan of Rs131 million, rupee loans of Rs469 million, internal accruals of Rs13 million and a rights issue of Rs337 million. (tsm)

Comment:

The Trident group of Punjab set up its fifth firm - Abhishek Spinfab Corporation Ltd (ASEL) - in April 1998 with an equity issue of Rs198.6 million at par.

Production management, Financial Holding Companies, Offices of Bank Holding Companies, Parent-to-subsidiary activities, Trident Group of Punjab

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LUPIN GROUP: MUCH PUBLICISED FOREIGN ACQUISITIONS FINALLY LIFT THE SPIRIT

Article Abstract:

Lupin group of Mumbai announced in May 1998 that it is likely to acquire an US company whose turnover is $100 million for $35 million. On June 9, 1998 it had announced that Lupin has signed a joint venture agreement with a Russian company to sell its anti- TB/cephalosporin formulations there. The price of its stock went up from Rs100 in March 1998 to Rs191 in the first week of June 1998. The scrip is traded at Rs123 now. In June 1993, Lupin Chemicals (LC), a group company, brought out a partly convertible debenture issue aggregating Rs456 million to part-finance its Rs825 million project for production of rifampicin. It took loans from financial institutions to the tune of Rs150 million and promoters contributed Rs219 million for the project. Lupin Laboratories (LL) was supposed to lift 70 percent production of LC. In December 1993, LL floated a public issue for raising Rs1,865.2 million to produce injectable cephalosporins, cefaclor and ciprofloxacin. It offered 6.217 million partly convertible debenture of Rs300 each aggregating Rs1,865.2 million. The promoters issued bonus shares for themselves up to 90.5 percent for the pre-issue capital of Rs180.1 million. The promoters holding cost them Rs0.95 against the investors cost of Rs118 per share. The promoters allotted 686,208 non convertible debentures (NCD) of Rs10 each with 10 warrant attached to each NCD. The warrant carried a right to get one share each in the third and fifth year of allotment. The public's investment in Lupin group companies amount to Rs1262.8 million and its value today is Rs1449.3 million, which is a gain of Rs186.5 million in the past five years. (rk) >EN

Comment:

Is likely to acquire US company whose turnover is $100 mil for $35 mil

Acquisitions & mergers, Article, Lupin Group

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BDH GROUP: PROMISES ARE MEANT TO BE BROKEN

Article Abstract:

The Bombay Drug House (BDH) group is promoted by Gopakumar Nair. Bombay Drugs and Pharma Ltd of the group floated a public issue in March 1994 to raise Rs34.4 million at par. It was manufacturing antibiotic drugs at Tarapur. It planned to set up a facility at Panoli in Bharuch district of Gujarat for making anti-fungal, anti-ulcer and anti-cancer drugs. The project was estimated to cost Rs67.2 million. The promoter's contribution to the equity was 17.4 percent. BDH Industries Ltd, another group company, raised Rs61 million from the public in February 1995, offering its shares at a premium of Rs30 each. The Rs61 million expansion plans were not appraised by any external agency. It set aside Rs45.8 million on the premium reserve. The net profit of BDH Industries Ltd in the 6 months ended September 1998 was Rs4.7 million against the projected Rs34.10 million for 1998-99 on a turnover of Rs148 million (Rs400 million). The net profit of Bombay Drugs and Pharma Ltd in the same period was Rs7.20 million on a turnover of Rs95.40 million. Both these companies have been performing below expectations since 1994-95. The share of the Bombay Drugs and Pharma Ltd is trading at Rs20.6 on the bourses while that of the BDH Industries Ltd is not trading at all. (rk) (kvr)

Capital expenditures, Bombay Drug House Group

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