Euro Ceramics To Issue FCCBS/GDRs/ADRs Upto US$ 100 Million To Fund Major Capacity Expansion

Euro Ceramics Ltd (ECL), a leading manufacturer of tiles and allied products, has drawn major expansion plans to the tune of Rs 575 cr which it is planning to fund by a combination of debt, equity and convertible instruments, subject to shareholder and other approvals.

Euro, which is the 2nd largest manufacturer of vitrified Tiles in India plans to ramp up capacities and is also considering setting up another greenfield plant for Tiles and allied products. To this effect, the Board of directors has proposed, subject to various approvals, issue of Equity Share of Rs 10/- each at a price of Rs 250/- (inclusive of Rs 240 premium) on preferential basis to Malabar Wasserstein Special Opportunity Fund and its affiliates upto US $ 15 millions, issue of FCCBs/GDRs/ADRs or other permissible instruments upto US $ 100 million in one or more tranches and enhance the FII limited for investment in the company’s Equity Share to 49%.

ECL manufactures Vitrified Tiles, Calcareous Tiles and Aluminium extruded Sections at its state-of-the-art manufacturing facility at Bhachau (Kutch) with technology from world leaders SACMI of Italy. ECL has also expanded into the manufacture of premium quality Sanitaryware.

ECL has already launched its Calcareous Tiles in the market and the market response to the same has been good. The company is in the process of commencing its 11,000 MTPA Sanitaryware Plant which will start operations by January 2008.

Source : Equity Bulls

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