Wednesday, October 25, 2006
IMFA, ICCL merger process complete
BS Reporter / Kolkata/ Bhubaneswar October 26, 2006
Indian Metals and Ferro Alloys Ltd (IMFA), India's largest producer and exporter of ferroalloys, has announced the merger of its subsidiary Indian Charge Chrome Ltd (ICCL) with itself.
The merger was concluded following the judgment of the Orissa High Court in this regard.
A composite Scheme of Arrangement & Amalgamation under Sections 391-394 of the Companies Act, 1956 had been filed by the two companies and judgment was reserved by the High Court after it finished hearing the matter in mid-August.
The Registrar of Companies has acknowledged receipt of the Court order and the merger has taken place with effect from October 17, 2006.
The net worth of the merged entity is estimated at Rs 124 crore as on March 31, 2006, with a projected turnover of Rs 500 crore in FY2007.
While ICCL was a public limited company listed on the stock exchange, IMFA was a closely-held company.
Following the merger, the promoter shareholding in IMFA has come down to 57 per cent with the rest being held by FI's and the general public.
An integral part of the merger scheme was the formation of an independent trust which will hold about 4 per cent of the post-merger equity of IMFA to be distributed to small shareholders at a minimum discount of 50 per cent to the market price.
The record date in this regard will be decided by the Board of Directors which will be meeting shortly to approve the consolidated accounts and take on record financial results for the quarter ended September 30, 2006.
Meanwhile, IMFA has chalked out plans to invest Rs 700 crore over the next three years to increase its ferroalloys capacity from the present 2,35,000 tonnes per annum to 3,50,000 tonnes per annum and expand its power generation activity in a big way.
"The company is also looking at power generation as a stand-alone business for which we are in the process of setting up a 30MW dual fuel power plant and a 120MW coal-based power plant", said Subhrakant Panda, managing director of the IMFA Group.
Of the total proposed capital expenditure of Rs 700 crore while Rs 550 crore will be invested in power projects, the rest will be spent on expansion of ferroalloys capacities.
The group has set a target to double its turnover to over Rs 1000 crore by 2010.
Panda said, with this merger, IMFA will be able to consolidate its leadership position as the largest fully integrated producer of ferroalloys in the country with 157 MVA installed furnace capacity backed up by a 108 MW coal based power plant and chrome ore mining tracts.
"The merger will help us fully capture the operational & financial synergies and a consolidated balance sheet positions as well to effectively implement the aggressive plans IMFA has in the pipeline", he added.
More links on the topic
Some Links on the topic