Jayshree Chemicals to raise 150 cr

Kolkata, Mar 15 : Jayshree Chemicals Limited, a SK Bangur Group company, is making a Rights Issue of 2,39,94,374 Equity Shares of Rs.10 each for cash at a premium of Rs.5 per Equity Share aggregating to Rs.3599.16 lacs, said an official release on Monday.

The Rights Issue is being made to the equity shareholders of the company in the ratio of 9 Equity Shares for every 2 Equity Shares held.

The Rights Issue has already opened and closes on Thursday 18th March, 2010. The issue is being made to part finance the company's modernisation-cum-expansion plan located at Jayshree in Ganjam district of Orissa at a capital outlay of Rs.150 crore.

The Rs.150 crore capital outlay envisages introduction of state-of-the-art Membrane Cell Technology by replacing the existing Mercury Cell Technology and raise production capacity of caustic soda from 65 tonnes per day to 152 tonnes per day.

The company has entered into a Memorandum of Understanding with M/s Uhde India Private Ltd, a wholly owned subsidiary of Uhde, Gmbh, Germany, a Thyssenkrupp Group Company for providing the entire engineering services, supply of membrane cell elements, total implementation and commissioning of the membrane based cell technology.

Apart from the Rights Issue of Rs.35.99 crore, the funding for the expansion-cum-modernisation plan will be made by a debt component of Rs.90 crore and balance by internal accruals and excise credit available to the company.

The entire debt has already been sanctioned by a consortium of bank led by State Bank of India and disbursement has already commenced, said the company