|
| Exchange Disseminated Time 03/11/2016 13:22:38 | Fiberweb India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 03, 2016 for the following:
1. The Board approved the establishment of 100% subsidiary Company at Free Trade Zone in U.A.E.
2. The Board approved the expansion plan and diversification in allied activities and approved the total outlay of approximately Rs. 100 crores for the same which will be done in a phased manner
3. The Board also approved raising of funds for the above
The Board approved the establishment of 100% subsidiary Company at Free Trade Zone in U.A.E. for Trading activities. However, if it is in the interest of the Company we may also start manufacturing facility.
The Chairman presented the expansion and diversification plan to the Board. The Company has always focused on offering good products and services to our customers in USA. These customers are increasing their demand for our products and insisting to enhance our capacity. To manage this increase in demand, the Board has approved the expansion plan and diversification in allied activities and approved the total outlay of approximately Rs. 100 crores. This will be done in a phased manner under the guidance of expert advice.
Shri Pravin V. Sheth, Chairman & Managing Director and Shri P.S. Krishnan, Chief Financial Officer were authorized to take necessary action in the matter and decide about the capital to be Infused into the subsidiary Company.
The various plans for raising of fund by different means to finance the capital expenditure and working capital were discussed. After due discussion, it was decided that the Company should go for raising the money in 30:70 ratio. The 30% of the requirement may be obtained from different options like QIP / Preferential issue / any other suitable way. However, the increase of paid up equity capital should not be beyond Rs. 2.50 crores, making total paid up equity capital of Rs. 15 crores or less. The balance 70% would be raised by way of borrowing method like financing mode/loan including ECB, Banking facilities etc. The company will call an Extraordinary General Meeting to decide upon the above funding plan on December 01, 2016.
Number of reputed FIls have shown their interest for investing in the Company by way of QIP. Even Domestic Mutual Funds and PM$ have shown keen interest in participating in this activity. This is very encouraging situation as such small fresh issue is envisaged.
The Board was informed that there is marked improvement in the working of the Company. The full year order book position, focus on R&D and improvement in profitability of the Company was very encouraging. The U.S.A. based clients are scheduled to come this month for further orders. The present capacity plus the job work facility of Unimin India Ltd., may not be sufficient to cater the heavy influx of the order.
The Board warmly welcome the situation and congratulated the entire team for their untiring effort, continued sincere hard work, Research & Development team for the new products introduced as also constant efforts to find innovative products. |
|
|