HIM ISPAT LTD.
OBJECTS & ACTIVITIES : Manufacture of cold rolled strips.
PROMOTION : The Company was promoted by Pradeep Chandra in collaboration with
the Himachal Pradesh Mineral and Industrial Development Corporation Ltd.
THE PROJECT : The plant for the manufacture of 5,000 tonnes per annum of cold
rolled steel strips of various types was set up at village Kandrori, Dist,
Kangra in Himachal Pradesh. A 20 High Sendzimir Mill was imported from U.K.
and the erection and commissioning of the plant was left to the supervisor
and the technicians of Senzimir of France. The implementation of the project
was given on a turnkey basis to the consultants Singh and Association of
Delhi. Production commenced during 1985.
EXPANSION & MODERNISATION : During 1988-89, the Company obtained permission
to undertake a modernisation-cum-expansion scheme to increase the plant
capacity to 50,000 tonnes per annum at an estimated cost of Rs. 16.98 crores.
Financial institutions sanctioned a term loan of Rs. 11.30 crores. The
balance cost of Rs. 5.68 crores was being met through rights issue of equity
shares and internal accruals. The expansion scheme was completed and
commercial production commenced from 15th July, 1992. Due to delay in
completion of expansion scheme, there was an escalation in its cost.
Financial institutions agreed to sanction additional loan of Rs. 84 lakhs to
meet part of the escalation in cost.
FINANCE : IDBI, IFCI and ICICI sanctioned term loans of Rs. 108.50 lakhs, Rs.
91.50 lakhs and Rs. 40.50 lakhs respectively. In addition, IFCI and ICICI
sanctioned foreign currency loans of sterling 1,82,700 (equivalent to Rs. 32
lakhs in DM) and Rs. 32 lakhs in U.S.$. The loan of Rs. 35 lakhs sanctioned
by IFCI was released during 1987-88.
RIGHTS ISSUES : During November-December 1989, the Company offered 13,85,000
rights equity shares at a premium of Rs. 5 per share in proportion 1:1. All
were taken up. Additional 1,19,456 shares werre allotted to retain
Another 69,250 equity shares were offered at a premium of Rs. 5 per share to
employees (including Indian working directors) on an equitable basis. Only
1,700 shares were taken up. The balance 67,550 shares were allowed to lapse.
During April 1992, the Company issued 14,45,578 equity shares of Rs. 10 each
at a premium of Rs. 5 per share on rights basis in the proportion 1:2.
Additional 2,16,836 shares were allotted to retain oversubscription.
Another 72,278 equity shares of Rs. 10 each at a premium of Rs. 5 per share
were offered to the employees etc., on an equitable basis. Only 43,900 shares
were taken up. The balance 28,378 shares were allowed to lapse.