Itc Ups Stake In Bhadrachalam Paper By 5%

Stock market sources said, the Rs 8,070-crore ITC has picked up a shade over 43.88 lakh equity shares from the market. During 1999-2000, the shares were purchased through Russell Credit Ltd, a wholly owned subsidiary of ITC.

However, the rate at which the shares were purchased could not be ascertained. The paper company's shares were quoted in the range of Rs 21.50 to Rs 65 during the year. Attempts to get the official spokesperson to ascertain the price at which the shares were bought, proved futile.

In 1998-99, ITC had raised its stake from 37 per cent to 51 per cent by subscribing a preferential allotment of shares. Priced at Rs 75 each, the issue offered 1.91 crore equity shares.

 

Recently the board of ITCBPL had decided to invest Rs 200 crore for the modernisation of its plant, which has just been expanded.

In his address to shareholders last week, ITC chairman Y C Deveshwar said: "It is expected that this company will continue to garner the required capabilities to dominate the South Asian markets and reach out to markets beyond."

The first phase of expansion began in 1996 and was partly funded by a rights issue of Rs 159 crore. The premium issue offered 3 equity shares for every 10 held by the shareholders. The cost of the total expansion plan is Rs 675 crore.

ITCBPL has just stabilised its new 1,20,000 tonne capacity paper machine and its registered a utilisation of 105 per cent. The company makes wide range of pulp and paperboard for packing oil, safety matches, detergents. It also produces cultural paper, coated and specialty papers and boards.

During 1999-2000, the company registered cash profits of Rs 8.41 crore against a cash loss of Rs 48.09 in 1998-99. In the first quarter of the current financial year, ITCBPL quadrupled its exports to Rs 24 crore.

The company has also entered into a collaboration with its parent ITC and Andhra Pradesh government for a clonal propagation programme that aims at planting 2.5 million high-yield, disease-resistant saplings. The project is spread over 1,500 hectares of degraded forest land.