Kolkata, September 15, 2016 - Orient Cement Limited, a part of USD 1.6 billion diversified CK Birla Group, announced its financial results for the quarter ended June 30, 2014. The company has recorded net revenues of Rs. 436 crores and net profit of Rs. 34 crores, reflecting a 31% increase in quarter-on-quarter net profit.
For the purpose of the Rights Issue, the Board has appointed a committee of directors to finalise, in consultation with the lead manager(s) and other advisors the letter of offer including the ratio and price at which the shares are to be offered on rights basis and take such other actions as may be necessary to obtain such approvals from all relevant authorities as required. Proceeds from the Rights Issue shall be used to reduce debt of OPIL and for general corporate purposes.
For the purpose of demerger, the Board has appointed acommittee of executives ("Demerger Committee") to formulate and recommend to the Board at its next meeting a scheme of arrangement for the demerger in consultation with the merchant bankers and legal advisors.
The in-principle decision to demerge the electric division is to facilitate both paper and consumer electric businesses to focus on their core competencies and to pursue their independent strategies. The timing of the demerger coincides with the improvement in OPIL's Paper business performance and sustained steady performance of the consumer electric business.
The Demerger Committee appointed to formulate the demerger scheme will work on various aspects of the scheme including consultations with various stakeholders such as statutory auditors, lenders, legal counsel, independent valuer, merchant banker, etc. and present the final scheme to the Board.
OPIL operates a paper plant with a manufacturing capacity of about 85,000 tonnes per annum in writing and printing and Tissue paper segments at Amlai (Madhya Pradesh) and is in the process of expanding its tissue paper capacity by further 25000 tons per year, which is expected to be commissioned shortly.
OPIL is also a leading player in consumer electric products with strong presence in fans. Other products include lightings, appliances and switch gears. As a part of its growth strategy, OPIL is focussing on increasing its market presence in all consumer electric products.
For the year ending March 31, 2016, OPIL reported a total income of Rs 1,838 cr with PBIDT of Rs. 117 cr.
The Board has appointed HDFC Bank Limited as Financial Advisor and Khaitan & Co as Legal Counsel for the Transactions.