Dharamsi Moraji To Float 1:2 Rights

The Dharamsi Morarji Chemical Company Ltd (DMCC) has decided to offer a rights issue to its shareholders in the ratio of one equity for every two equity shares.

The company is making an offer of 67.63 lakh equity shares of Rs 10 each in cash at par, aggregating Rs 6.76 crore. The objective of the issue is to augment long-term financial resources of the company for general corporate purpose including working capital requirements and repayment of unsecured loans.

This rights issue is scheduled to open on 28th September, 2001. Addressing the 81st annual general meeting, chairman R M Goculdas, said, "Your company is gearing up to the challenges offered by the economic reforms and deregulation process. It is adopting best practices, investing in new quality, research and development, improving supply chain and actively pursuing new growth opportunities including strategic alliances."

The company is implementing a rationalisation and restructuring plan which includes cost effectiveness measures to improve competitiveness and performance.

DMCC has posted a profit of Rs 159.01 lakh and a turnover of Rs 245.79 crore as on March 31, 2001. The exports stood at 16.01 crore. The company is also increasing the capacity of their absolute alcohol plant to enable the production of eco-friendly additive for petrol and in order to explore markets for speciality chemicals.