ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Indian Bank Mutual Fund

Manali Petrochemicals MANALI PETROCHEMICAL is offer ing lakh equity shares of Rs 10 each at par, of which 50 lakh shares have been reserved for firm allotment to financial institutions and 16.2 lakh shares to employees of the company and the promoter company. Of the balance being offered to the public, 20 lakh shares have been reserved for preferential allotment to non-resident Indians on repatriation basis and 73.8 lakh shares are being offered to the Indian public. The issue opens for NRIs on January 22 and for the Indian public on January 29. The share issue will part-finance the company's Rs 101.70 crore project for the manufacture of propylene oxide/ propylene glycol (PO/PG) and polyols. The company has been promoted by Southern Petrochemical Industries (SP1C) and the plant will be located at Manali near Madras. The plant will have an annual capacity of 12,000 tonnes of PO for captive consumption, for the manufacture of 6,250 tonnes per annum of PG and 6,000 tonnes per annum of polyols. PG is used in a wide range of industries such as pharmaceuticals, food flavour, syrup and cigarettes and polyolsin furniture, footwear, refrigeration, automotive parts, industrial insulation, etc. The project enjoys the advantage of obtaining its basic raw materials, propylene and chlorine, from Madras Refineries and SPIC, respective ly, located close to the plant. The company has the process technology of ATO Chem of France for PO/PG and of AR- CO of the US for polyols in technical col laboration with Technip of France. The company has also entered into a long- term arrangement with ARCO for providing technical consultancy in the application and testing of polyurcthene foams and for developing new applications. The cost of the project is being met by equity capital of Rs 32.40 crore (including Rs 16.40 crore from SPIC and its shareholders), rupee term loan of Rs 58.71 crore and foreign curjrency loan of Rs 2,29 crore from the financial institutions and unsecured loan of Rs 8.30 crore from the promoters. The plant is scheduled to be commissioned by April this year.

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