| The Company was incorporated on 16th January 1979 , at Jullundar (Punjab).The Company's object is to manufacture all kinds of yarn and fibres and wool tops.The Company was promoted by Oswals of Ludhiana (promoters of Vardhaman Spinning and General Mills Ltd., and Mahavir Spinning Mills Ltd.) with the object of setting up a worsted spinning plant. The Company's synthetics and wool-blended hosiery and knitting yarns were marketed under the brand name "ADHINATH".
1984 - The Company was issued a license for 1,200 spindles. The Company
proposed to set up a combing project as it held an industrial
license for the manufacture of 7,72,600 kgs. of wool tops per
annum. Also, an application was made for a license for 9 power
looms.
- All shares taken up by promoters, directors etc.
1985 - The Company formulated a modernisation balancing scheme costing
Rs.158.25 lakhs under which it proposed to replace the obsolete
machines by new indigenous and imported equipments.
1986 - The Modernisation balancing scheme could not be implemented.
However, it was proposed to revise the scheme to increase the top
making capacity of the unit by 33% to reduce the company's
dependence on outside carding process.
1987 - The Company received a letter of intent for setting up 6,000
Nos. worsted spindles.
- The Company proposed to manufacture factory qualities of hand
knitting yarn and better quality of hosiery yarns.
- A detailed scheme was submitted to PSIDC involving a capital
outlay of Rs.96 lakhs.
1988 - 4,400 spindles were installed and commissioned. The balance
1,600 spindles were expected to be in operation by the end of
the first quarter of 1990.
- The Company obtained a license for the setting up of a spinning
project for the manufacture of cotton and synthetic yarns with a
capacity of 25,000 spindles.
- 7,20,000 No. of equity shares issued at a prem. of Rs.5 per
share out of which the following shares were reserved for
pref. allotment:
- (i) 36,000 shares to employees (including Indian working
directors)/workers of the company (only 22,800 shares taken up);
- (ii) 14,400 shares to promoters of the company (all were taken
up) and
- (iii) 2,50,000 shares to non-resident Indians on repatriation
basis (all were taken up).
- The balance 4,19,600 shares along with 13,200 shares not taken up
by employees, were offered for public subscription during
October. Addition 1,08,000 shares were allotted to retain
oversubscription (2,200 shares to promoters, 37,500 shares to
non-resident Indians on repatriation basis and 68,300 shares to
the public).
1989 - During July, the company issued 3,31,200 - 14% secured fully
convertible debentures of the face value of Rs.250 each out of
which 1,30,800 debentures were offered on Rights basis to the
existing equity shareholders in the prop. 1 debenture : 10 No. of
equity shares (1,03,076 debentures taken up). Out the remaining
2,00,400 debentures, the following were reserved for pref.
allotment:
- (a) 12,000 debentures each to UTI and SBI Capital Markets, Ltd.
(all were taken up);
- (b) 16,560 debentures to employees/workers of the company (only
1,210 debentures taken up); and
- (c) 40,000 debentures to NRIs on repatriation basis (only 24,624
debentures were taken up). The balance 1,19,840 debentures along
with the unsubscribed portion of 58,450 debentures from the
preferential and rights quota were offered to public. Additional
49,680 debentures were allotted to retain over subscription.
- Rs.125 per debentures out of Rs.250 will be converted on the
expiry of six months from the date of allotment into 5 No. of
equity shares of Rs.10 each at a prem. of Rs.15 per share. The
balance Rs.125 per debentures will be converted on the expire of
12 months from the date of allotment into 5 equity shares of
Rs.10 each at a prem. of Rs.15 per share. Accordingly 38,08,800
shares were allotted.
1992 - The Company ventured into new business of manufacturing twisted
yarn.
1994 - The Company proposed to come out of the hosiery segment of
acrylic yarn market by diversifying into products like polyester
wool, pure wool and polyester viscose yarns suitable for worsted
suitings.
- 35,00,000 No. of equity shares allotted to promoters on private
placement basis.
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