VST PRECISION PLANS PUBLIC ISSUE

Article Abstract:

VST Precision and Components Limited, joint venture between VST Tractors Tillers Limited and Kinsho Mataichi Corporation of Japan, has proposed to float a Rs3 crore public issue to fund its engine component project, VST Precision Components. The project, which was commissioned three years back, envisaged a total investment of Rs13 crore. It got delayed due to shortage of funds. VST has now raised a term loan of Rs7 crore from IFCI, Rs4 crore from promoters, Rs2 crore from VST Tractors, Rs1.5 crore from Kinsho Mataichi and the Rs0.5 crore from the VST group. The bottomline of the company was severely affected in 1997-98 as a major order from Thailand was canceled due to the South Asian currency crises, leading to gross under- utilisaton of capacity and extensive cash loss. The plant has four production lines and at present it is operating at 50 percent capacity utilisation. In 1997-98, VST incurred loss of Rs65 lakh on a turnover of Rs4.38 crore. (gsh)

Comment:

Proposes to float Rs3 crore public issue to fund its engine component project

Other Engine Equipment Manufacturing, Automotive Diesel Engines, VST Precision and Components Ltd.

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ESCORTS FIN'S RIGHTS ISSUE HITS FI ROADBLOCK

Article Abstract:

The proposed rights by Escorts Finance issue is facing problems following the stand taken by the financial institutions (FIs). FIs have rejected the proposal by Escorts Limited for subscribing to the entire rights issue. Escorts Limited is the parent company of Escorts Finance. Escorts Limited proposes to subscribe to an additional 1.44 crore shares in the proposed rights issue against its entitlement of 38.19 lakh shares on a 1:1 rights basis. FIs have stated that Escorts Limited should be allowed to subscribe to the issue only to the extent of its entitlement. (ag)

Comment:

Proposed rights by this financial firm's issue is facing problems following stand taken by the financial institutions

Financial Services, Finance and Insurance, Escorts Finance Ltd.

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ITI PLANS Rs100-CR BOND ISSUE TO FUND CAPITAL EXPENDITURE

Article Abstract:

ITI Ltd, the country's biggest telecommunications company, has decided on a Rs100 crore bond issue to meet its capital expenditure. The company is asking the Union government for a guarantee for payment of interest and repayment of principal. The issue will be floated after approval from the government. The Union budget for 1998-99 has allotted Rs10 crore to the company out of the National Renewal Fund. (khr)

Comment:

To issue Rs100 Crore worth of bonds to raise funds for capital expenditure

Communications, Broadcasting and Telecommunications, Telecommunications industry, ITI Ltd.

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