Manaksia plans expansion

Kolkata: Manaksia Ltd is coming out with an Follow-on Public Offering (FPO) to raise Rs 710 crore for expansion.

The company would be using Rs 750 crore for expansion of metal business by purchasing capital equipment, repayment of debts and for general purposes. Recently the company got Maruti-Suzuki to buy its aluminum alloys for auto parts.

“We would use Rs 110 crore for purchasing some equipment for aluminum rolling line at Haldia to produce higher value added products, Rs 60 crore to repay debts and the rest for general business,” said B K Agarwal, managing director of Manaksia.

Capacity of the Haldia plant would increase to 36,000 ton from 18,000t for aluminum rolling lines while capacity for galvanising steel would increase to 50,000t from 18,000t now.

The company had two manufacturing units at Nigeria and it would shift its Nepal factory machines there. “Nepal was a good market but recently there has been some operational difficulties and hence we are shifting that unit to Nigeria, where we have a capacity utilisation of 110 percent,” said Agarwal.

Operations in Nigeria contributed 45 percent to the top line and 50 percent to the bottom line in the last fiscal.

The company had one unit in Ghana too besides and 15 units across India. Revenue stood at Rs 748 crore in the last fiscal while the first five months of the current fiscal till August saw revenue at Rs 428 crore.

The FPO would constitute 15.5 million equity shares of Rs 2 each for cash at a price band of Rs 140 to Rs 160 per share through 100 per cent book building process.

Net issue to the public would constitute 22.15 per cent of the fully diluted post-issue capital of the company and share of promoters would come down to 58.1 per cent from 74 per cent.

Its shares were listed on the Calcutta Stock Exchange Ltd (CSE) and would be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The FPO would open for subscription on December 17 and close on December 19.