Surana Industries Limited
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BSE Code:
513597
NSE Code:
SURANAIND
Business Profile
Business Profile
Surana Industries (SURANAIN) is engaged in the manufacture of steel and power generation for captive consumption. It was incorporated in March 1991 and went public in May 1994. It is part of the Surana group of industries, which has business interests in steel manufacturing, jewelry manufacturing and power generation.
The company produces thermo mechanically treated bars, cold twisted deformed bars, mild steel ingots, mild steel structurals, hot-rolled coils, processed cold-rolled sheets and plates cut-to-size structural items. The manufacturing units are located in Gummidipoondi and Chennai in Tamil Nadu with facilities for the production of TMT Bars, an induction furnace with a capacity of 30,000 MTPA for the production of mild steel ingots from the steel scrap. The company is in the process of establishing integrated steel complex at Raichur, Karnataka on 300 acres allotted by the Government of Karnataka. The allotment of iron ore mines from the Bellary-Hospet region has been short-listed. Special alloy steel meant for the automobile industry would be produced here.
Eight wind mills have been installed in the Tirunelveli district of Tamil Nadu for generation of wind energy utilized for captive consumption, and the surplus power is being sold to the Tamil Nadu Electricity Board. As on March 31, 2007, the wind mills could produce a total of 13.6 million units of electricity.
The registered office is at New No 29, Old No 16, 2nd Floor, Whites Road, Royapettah, Chennai-600014, Tamil Nadu.
Financials
Surana Industries registered a 40.84% growth in net profit to Rs 67.94 million for the quarter ended December 2007 from a profit of Rs 48.24 million for the quarter ended December 2006.
Net sales rose 23.47% to Rs 1,649.95 million for the quarter ended December 2007 from Rs 1,336.31 million for the quarter ended December 2006.
Total income rose 23.73% to Rs 1,659.99 million for the quarter ended December 2007 from Rs 1,341.65 million for the quarter ended December 2006.
Recent Developments
14-FEB-08
On Feb. 11, 2008, the shareholders accorded the following, subject to necessary provisions and approvals:
Authority to the board to offer 800,000 equity shares of Rs 10 each at a premium of Rs 490 each aggregating to Rs 400 million for consideration other than cash to select persons (non promoters) on preferential basis.
Authority to the board to offer 7 million equity shares/fully convertible debentures/fully convertible preference shares by way of qualified institutional placement (including mutual funds).
Authority to the board to offer 7 million share warrants of Rs 300 each aggregating to Rs 2,100 million to promoters (promoter group) on preferential basis.
09-JAN-08
On Jan. 9, 2008, the board of directors decided, subject to necessary provisions and approvals:
To acquire equity shareholding of PT Agate Resources Indonesia, Sbn Bhd from the present holders for a value of Rs 400 million. Agate Group Indonesia Sbn Bhd is a company engaged in mining of coal and acquisition of substantial holding of the company will give the company backward integration and assured supply of coal which will benefit the integrated steel plant being set up at Raichur at Karnataka. The company will make a preferential allotment of 800,000 equity shares of Rs 10 each, at a premium of Rs 490 per share to Agate Resources, subject to necessary provisions and approvals.
To place 7 million shares with FII/QIB/MF for subscribing to FCCB/QIP/GDRs.
To place 7 million warrants to promoters and promoters group.
To implement the II phase expansion of the integrated steel plant at Raichur at a cost of Rs 15,000 million approximately.
18-DEC-07
Regarding issue of FCCB of USD 14 million, the over allotment option of USD 11 million was exercised and the same was fully subscribed on Dec. 7, 2007. The Bond will be listed on the Luxemburg Stock Exchange.