Indian Charge Chrome merges with Indian Metals
Rs 700 cr investment plan to increase ferro alloys capacity
Oct 25, 2006
The Hindu Business Line

Indian Metals and Ferro Alloys Ltd (IMFA) has announced the merger of group company Indian Charge Chrome Ltd with itself. Post-listing the promoters holding would be around 57 per cent, according to a company release. Re-listing The company plans to get re-listed by January 2007 and plans to apply to the stock exchanges by the end of November or early December, the Managing Director of the company, Mr Subhrakant Panda, said.

According to Mr Panda, through the merger, the company is consolidating itself 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.

Independent Trust

"The merger will help us fully capture the operational and financial synergies and a consolidated balance sheet positions us well to effectively implement the aggressive plans that IMFA has going forward," he said.

As part of the merger scheme, an independent trust would be formed which will hold about 4 per cent of the post-merger equity of IMFA to be distributed to small shareholders at a minimum discount of 50 per cent to the market price.

The company plans to invest Rs 700 crore over the next three years to increase its 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 and is setting up a 30 MW dual fuel power plant and a 120 MW coal-based power plant.

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