Williamson Shelves Cap Mart Plan
George Williamson (Assam) has shelved its plan of tapping the capital market, said S K Mitra, chairman and managing director.
The UK-based Magor family now holds controlling interest in the company following the separation of the tea business between the Magors and Khaitans of the Williamson Magor group.
The company had planned to issue non-convertible debentures (NCDs) of Rs 50 crore. The aim was to fund the acquisition of two gardens from Bishnauth Tea Company, a Khaitan-held company. Post-separation, George Williamson decided against the acquisition.
Also Read
Mitra said the company would tap the markets only once there are some concrete acquisition plans. George Williamson is open to acquisitions in Assam. "If we get a good garden in Assam, we will buy it" said Mitra. The credit rating agency, Icra, had assigned an LAA+ rating to the Rs 50 crore NCD programme of George Williamson indicating high safety.
Following the division, George Williamson has set up its own shipping and sales and marketing teams. The erstwhile divisions have gone to the Khaitans after the split.
Mitra said, the company is focused on quality and has engaged in replanting in its various gardens.
In the first quarter, George Williamson reported a net profit of Rs 1 crore against a net loss of Rs 2.6 crore in the corresponding period, the previous year.
The turnaround, apparently was possible mainly due to nil provision for expenditure under voluntary retirement scheme and a provision of Rs 0.7 crore for diminution in value of investment no longer required. The company has deducted Rs 2.1 crore towards loss on sale of investment from profit before tax and added Rs 0.7 crore for diminution in value of investment. Net sales, however dipped to Rs 18.7 crore, from Rs 20.3 crore.
George Williamson owns 17 tea estates in the upper and middle Assam with a total area of around 9,200 hectares. The company produces around 20 million kg.
George Williamson scrip dipped 6 per cent to close at Rs 70.50 on the Bombay Stock Exchange and at Rs 70 on the National Stock Exchange.