Indian Charge Chrome merges with IMFA
Merged entity is India's largest & only fully integrated producer of ferro alloys Targets a turnover of Rs 1000 crores by 2010
Oct 24, 2006
Internal Press Release

Indian Metals and Ferro Alloys Ltd, India’s largest producer and exporter of ferro alloys, today announced the successful merger of Indian Charge Chrome Ltd (ICCL) with itself. The merger has been successfully concluded with the pronouncement of judgement in this regard by the Hon’ble Odisha High Court. A composite Scheme of Arrangement & Amalgamation under Sections 391-394 of the Companies Act, 1956 had been filed by the two Companies and judgement was reserved by the Hon’ble High Court after it finished hearing the matter in mid-August.

	Key Highlights
	ICCL merges with IMFA after the pronouncement of judgement by the Hon'ble Odisha High Court
	IMFA becomes the largest and only 'fully integrated' producer of ferro alloys in the country
	Net worth of Rs 124 cr as on 31st March 2006 & projected turnover of Rs 500 cr in FY 2007
	Promoter shareholding is 57%
	Capex plans of Rs 700 cr
	Targeting a turnover of Rs 1000 cr by 2010
	Adding a 27 MVA & 48 MVA furnace at a cost of Rs 150 cr which will increase ferro chrome capacity from 2,35,000 tonnes per annum to 3,50,000 tonnes per annum
	Foraying into power generation as a stand-alone business
	Setting up a 30 MW dual fuel & 120 MW coal-based power plant at a cost of Rs 500 cr

Speaking on the occasion, Mr Subhrakant Panda, Managing Director, IMFA Group, said, “This is a very momentous occasion for the Company as with this merger Indian Metals & Ferro Alloys Ltd (IMFA) consolidates its leadership position as the largest fully integrated producer of ferro alloys in the country with 157 MVA installed furnace capacity backed up by a 108 MW coal based power plant and chrome ore mining tracts. The merger will help us fully capture the operational & financial synergies and a consolidated balance sheet positions us well to effectively implement the aggressive plans IMFA has going forward. The Registrar of Companies has acknowledged receipt of the Court order and the merger has taken place with effect from 17th October 2006.

With the buoyant steel demand both domestically and internationally, we plan to invest Rs 700 crores over the next three years to increase our ferro alloys capacity from the present 2,35,000 tonnes per annum to 3,50,000 tonnes per annum. The company is also looking at power generation as a stand-alone business for which we are in the process of setting up a 30 MW dual fuel power plant and a 120 MW coal-based power plant. With all these plans we are optimistic of achieving a turnover of over Rs 1000 crores by 2010 he further added.

The net worth of the merged entity is Rs 124 crores as on March 31st 2006 with a projected turnover of Rs 500 crores in FY 2007. The promoter shareholding is 57% with the rest being held by FI’s and the general public. An integral part of the merger scheme was the formation of an independent trust which will hold about 4% of the post-merger equity of IMFA to be distributed to small shareholders at a minimum discount of 50% to the market price. The record date in this regard will be decided by the Board of Directors which will be meeting shortly to also approve the consolidated accounts and take on record financial results for the quarter ended 30th September 2006.

For any information relating to IMFA Group or to enquire about a Press Release issued by us please contact:

Mr Kishore Mohan Mohanty
Bhubaneswar
email: kishoremohanty@imfa.in