Date:14/06/2005 URL: http://www.thehindubusinessline.com/2005/06/14/stories/2005061400780200.htm

Back Pitti Laminations plans pref shares to fund expansion

Our Bureau

Hyderabad , June 13

PITTI Laminations Ltd, a leading manufacturerof laminations for the electrical industry, will offer 15.90 lakh equity shares of Rs 10 each at a premium of Rs 62 on a preferential basis and also issue 4.10 lakh warrants at the same price.

The move was approved at an extraordinary general body meeting held here on Saturday. Of the 15.90 lakh preferential offer of equity shares, the company will be issuing 12 lakh shares to non-promoter companies Sonata Investments Ltd and Trimurty Equities & Finance (Bombay) Pvt Ltd and the balance 3.90 lakh shares will be picked up by the promoters.

The entire lot of 4.10 lakh warrants, to be issued at Rs 72 per instrument, will be issued to one of the promoters, Mr Akshay S. Pitti.

Mr Sharad S. Pitti, Chairman and Managing Director of the company, said: "The fund raising was being undertaken to finance the expansion-cum-modernisation programme undertaken by the company. We plan to undertake modernisation of Plant I and expand the capacity of Plant II, which commenced commercial production earlier this year in April, from 4,000 tonnes to 19,000 tonnes. This would take our total installed capacity to 25,000 tonnes. Plant II, with a capacity of 4,000 tonnes per annum, is dedicated to the export market."

During 2004-05, the company posted a 20 per cent higher sales revenue at Rs 54.58 crore compared to previous year's Rs 45.32 crore .

However, due to higher tax liability net profit after tax was higher by only 24.64 per cent at Rs 5.02 crore (Rs 4.03 crore).

The board of directors of the company has recommended a dividend of 15 per cent for the financial year ended March 31, 2005, including the interim dividend of 10 per cent declared in January 2005.