Kanishk Steel Industries Ltd

Kanishk Steel Industries Limited is the largest steel manufacturer in South India since 1989 having of its Furnace Unit and Rolling Mill to produce various front-line Rolled Steel products. The Company is presently engaged in the manufacture and supply of Iron and Steel Products. Promoted by the Gupta Bros. in 1989 as a Private Limited Company, the Company has an installed capacity of 50,000 tpa to manufacture various steel products like tors, rounds, squares and profiles and structurals like channels, joints, I-beams, etc. It became a public limited company in Apr.'92 and entered the capital market in Nov.'92 to fund its expansion programme. The company has embarked on an eco-friendly process of power generation through wind mills, by installing a 6-MW wind power project and has already started generating 4 MW. To augment resources for this project, it offered a (1:1) rights issue of FCDs, aggregating Rs 25 cr. The issue was also instrumental in increasing the capacity of the steel re-rolling mill from 50,000 tpa to 66,000 tpa. A sizeable portion of its production is through conversion contracts with Indian Iron & Steel Company, Rashtriya Ispat Nigam and other producers of semis. The company has expanded and diversifed its activities at a cost of Rs 400-cr integrated steel project (cap.: 3 lac tpa of steel billets) a technical assistance agreement was signed in Nov.'94, with the Chongquing Iron & Steel Company, China. Technical up gradation and automation process in the Structural Mill was completed during the year 2003. The Company started the commercial production of Sponge Iron product during September 2005. It installed Two Wind Energy Generators (WEG) during the year with a capacity of 1.250 MW each for reduction in power cost. As per the approval of the Merger Scheme by the Hon'ble High Court of Madras on 18-7-2006, two companies, M/s. OP Steel Limited and M/s. Avanti Oil and Steel Industries Private Limited were amalgamated with the Company effective from 18 July, 2006 and 98,01,518 Equity shares of the company were allotted to the equity shareholders of the transferor companies on 6.10.2006. Accordingly, the entire business undertakings of the transferor companies stood transferred to and vested in the Company during the period 2007. In 2008-09, the Company promoted a special purpose vehicle, OPG Renewable Energy Private Limited by holding 34% voting equity capital and handed over the 10MW Power plant to OPG renewable Energy Private Limited on 26th April 2008. During the year 2012-13, the Scheme of Arrangement between Kanishk Steel Industries Limited (Demerged Company), Gita Renewable Energy Limited and Chennai Ferrous Industries Limited was implemented, whereby the Power Division and the Sponge Iron Division was demerged into Chennai Ferrous Industries Limited (CFIL) and Gita Renewable Energy Limited (GREL) respectively, as a going concern basis and the said Scheme became effective on 28 February, 2013. Pursuant to the said Scheme, 1 equity share in Gita Renewable Energy Limited of face value of Rs.10/- each as fully paid up for 7 equity shares of Rs.10/- each fully paid up was held in the Demerged Company in the ratio 7:1; and 1 equity share in Chennai Ferrous Industries Limited of face value of Rs.10/- each as fully paid up for 8 equity shares of Rs.10/- each fully paid up was held in the Demerged Company in the ratio 8:1 respectively. Accordingly, CFIL and GREL allotted shares as above on 19.04.2013. The cost of acquisition of Equity Shares was apportioned as follows: Kanishk Steel Industries Limited: 36.36%, Gita Renewable Energy Limited: 34.80%, and Chennai Ferrous Industries Limited: 28.85%.