History of Ispat Industries Ltd.
1984 - The Comp. was incorporated in the name of Mittal Galvazinc Ltd., on 23rd May, as a Public Limited Company. The Company name was changed to the present one from 22nd April, 1985. It was promoted by M.C. Mittal along with his relatives & associates.
- The main objective of Comp. is to manufacture all types of Galvanized Plain/corrugated Steel Sheets/Strips/Coils.
- The Comp. had set up a plant at Kalmeshwar, Nagpur to manufacture 35,000 MT per annum galvanized plain/corrugated sheets [UP/GC sheetss] of twin guages [0.5 mm & lessers] adopting Dry Flux Process, introduced for first time in India.
- The Comp. entered into technical collaboration agreement with Nippon-Denro Manufacturing Ltd., Japan & Hivahara and Co. Ltd., Japan, sole trade representatives of Nippon Denro.
1985 - 110 shares subscribed for by signatories to the Memorandum of Association. 46,49,890 No. of equity shares issued at par out of which the following shares were reserved & allotted:
- [is] 18,99,980 shares to promoters, directors, etc.
- [iis] 6,00,000 shares to non-resident Indian promoters & their associates on repatriation basis.
- [iiis] 2,00,000 shares to SICOM.
- The balance 19,00,000 shares were offered for public subscription during August. 4,87,500 additional shares allotted to the public to retain oversubscription.
1986 - The Comp. set up a cold rolling mill with 1,25,000 TPA capacity of cold rolling steel sheets at Kalmeshwar, District Nagpur in
Maharashtra in technical collaboration with companies like Nippon Denro and Hitachi Ltd., of Japan.
1987 - The margins on galvanised sheets were under pressure due to unprecedented increase in the international prices of cold rolled coils, the primary raw material for galvanised sheets, & the entry of several new manufacturers of galvanised sheets.
- 51,37,500 Rights equity shares issued [prem. Rs. 10 per share; prop. 1:1s]. Another 9,750 shares allotted to employees [prem. Rs. 10 per shares]. Also 13,47,000 shares allotted to NRI promoters [prem. Rs. 10 per shares].
1988 - The Comp. offered 2,00,000-14% secured fully convertible debentures of Rs. 250 each on Rights basis in the proportion 1 debentures : 50 equity shares held [all were taken ups].
- Simultaneous to the above Rights issue, the Comp. issued 11,20,000-14% secured fully convertible debentures of Rs. 250 each through a prospectus of which the following debentures were reserved for allotment on a preferential basis:
- [is] 1,20,000 debentures to NRIs on repatriation basis [all were taken ups]
- [iis] 1,20,000 debentures to UTI [all were taken ups] and
- [iiis] 66,000 debentures to employees [including Indian working directorss]/workers of Comp. [only 620 debentures were taken ups].
- The remaining 8,14,000 debentures along with unsubscribed portion of 65,380 debentures from employees' quota were issued to the public [all were taken ups]. Additional 1,98,000 debentures were allotted to retain oversubscription.
- Rs. 125 of face value of each debenture was converted into 5 equity shares of Rs. 10 each at a premium of Rs. 15 per share on 25.7.1989. Accordingly 75,90,000 No. of equity shares were allotted in part conversion of debentures.
- The remaining Rs. 125 of face value of each debenture was converted into 5 equity shares of Rs. 10 each at a premium of Rs. 15 per share on 25.7.1990.
1989 - The Comp. issued 30,00,000 - 14% secured non-convertible debentures of Rs. 100 each to financial institutions on private placement basis.
1990 - The continuous galvanising line achieved increased productivity through technological upgradation by installation of sophisticated electrical & computerised control equipment.
1991 - The recession in the steel industry, acute shortage of imported raw materials as a result of foreign exchange crunch, sharp increase in input costs due to fall in exchange value of rupee for imported raw materials etc.
- The Comp. undertook to set up a 1 million TPA sponge iron project at district Raigad near Mumbai.
- The plant incorporating the latest Direct Reduction technology from Midrex Corporation, USA, in the largest single module with a capacity of 1 million TPA capable of operation with 100% indigenous lump ore.
- During February/March, the Comp. offered 90,00,000 - 12.5% secured fully convertible debentures of Rs. 140 each on Rights basis in the proportion 25 debentures : 100 equity shares held.
- Simultaneous to the Rights issue, the Comp. issued through the prospectus 102,85,714 - 12.5% secured fully convertible debentures of Rs. 140 each of which the following debentures were reserved for allotment on a preferential basis:
- [is] 25,00,000 debentures to Ispat Alloys, limited & Ispat Profiles, Ltd.
- [iis] 9,21,429 debentures to NRIs on repatriation basis;
- [iiis] 7,50,000 debentures to financial institutions, insurance companies, banks & mutual funds; and
- [ivs] 9,64,285 debentures to employees [including Indian working directorss]/workers of company.
- The balance 51,50,000 debentures along with unsubscribed portion, if any, from the preferential quota were offered to the public during February. Under the above issues, the Comp. allotted 118,28,571 debentures as on 26th April, & 90,00,000 debentures as on 5th June.
- Rs. 50 [Part-As] of face value of each debenture was to be compulsorily & automatically converted into 2 equity shares of Rs. 10 each at a premium of Rs. 15 per share at the end of 9 months from the date of allotment of debentures.
- Rs. 90 [Part-Bs] of face value of each debenture was to be converted into such number of equity shares of face value of Rs. 10 at a premium to be decided by CCI between 24 to 30 months from the date of allotment of debentures.
- The Comp. also issued through the prospectus during February, 80,00,000 - 14% secured redeemable non-convertible debentures of Rs. 100 each of which 27,00,000 debentures were reserved for allotment on a preferential basis to financial institutions, insurance companies, banks & mutual funds. The remaining 53,00,000 debentures were offered to the public.
- These debentures were to be redeemed at a premium of Rs. 5 per debenture at the end of 5th, 6th, 7th, 8th & 9th years from the date of allotment at a premium of Rs. 5 per debenture payable at the end of the 7th year.
- 416,57,142 No. of equity shares allotted [prem. Rs. 15 per shares] in part conversion of debentures.
1993 - In the second phase of expansion programme, a Skin Pass Mill will be installed, with the commencement of its operation the capacity of the plant will touch 3,15,000 MT per annum.
- During the year, a letter of intent was obtained for setting up of a plant for manufacture of 50,000 TPA of PVC coated steel sheets. The said project set up in collaboration with Nippon Denro Mfg. Co. Ltd.
- 68,92,300 No. of equity shares allotted at a premium of Rs. 15 per share to IFC. 1,08,000 shares allotted on conversion of loans to financial institutions. 749,82,855 No. of equity shares allotted on conversion of A and B parts of 12.5% debentures.
1994 - 13,10,950 No. of equity shares underlying GDRs allotted. 80,96,000 shares allotted at par on conversion of loans.
1995 - The Comp. received a Letter of Intent for providing basic telecommunications services by departmental of communication for Maharashtra circle. For iron ore mining a new joint venture company viz., Bailadilla Mineral Development Co. Ltd.
- The Comp. was promoted central Indian Power Comp. limited [CIPCUs] jointly with GEC Plc of UK and EDF of France for setting up of 1092 mw thermal power project at Bhadavali near Nagpur.
- Ispat Metallics India Ltd., promoted by Comp. undertook to set up a blast furnace to manufacture pig iron/liquid hot metal adjacent to the company hot strip mill complex.
- The Comp. also undertook to set up a sponge iron plant at South Hidd Industrial area in Bahrain. A new Comp. Bahrain Ispat limited was incorporated to set up a 1.2 million tonnes sponge iron plant.
1996 - As a forward integration to the existing sponge iron plant at Dolvi & backward integration to the existing cold rolling complex at Nagpur, the Comp. undertook to set up facilities to manufacture hot rolled steel sheets & coils with a capacity of 3 million tpa. This project would have the flexibility to manufacture HR coils of thickness ranging from 1.2 mm to 25 mm & width ranging from 900 mm to 1560 mm.
- A captive power plant together with other complex infrastructure facilities & utilities & other ancillary facilities was also to be set up. The Comp. envisages manufacture of HR coils based on the twin shell ultra-high power electric arc.
- In addition during the year, the Comp. installed a second continuous galvanising line with a capacity of 50,000 tpa.
- In the second phase of expansion programmed of cold rolling plant, a skin pass mill was installed raising the capacity to 2,85,000 TPA. With a view to offering value added products the Company undertook to instal a second continuous galvanising line with a capacity of 70,000 TPA.
- 13,10,950 No. of equity shares underlying GDRs allotted. 80,96,000 shares allotted at par on conversion of loans.
1997 - `Ispat Industries' 1 - million tpa sponge iron unit at Raigad [Maharashtras] is the second largest gas based unit in the country after Essar Steel went on stream two years ago in October, 1994.
- Ispat Industries Ltd is developing a state-of-the-art, 26-floor `intelligent' building in perhaps the last undeveloped prime property located on Mumbai posh Pedder Road.
- Ispat Industries, flagship of M L Mittal-controlled Ispat group, has entered into an agreement with KFW [Kreditanstalt Fur Wiederaufbaus], Germany, & International Finance Corporation [IFCs], Washington, for Rs.1,198 crore fund infusion as part of foreign currency requirement for its Rs.4,792 crore integrated steel project at Dolvi, Maharashtra.
- The Comp. has entered into comprehensive equipment supply agreement with suppliers like SMS Scloemann Siemag, Germany, Mannesman Demag and Siemens.
- The Comp. will offer 7,99,28,776 convertible debentures of Rs. 100 each for a cat at par, aggregating Rs. 799,28,77,600, on a rights basis to its shareholders one convertible debenture for every two equity shares held.
- The Comp. issued a 3 per cent Euro-convertible bond in March 1994, totalling $122.20 million.
- The name of Comp. was changed to Ispat Finance Ltd from Shrest Industries Ltd as a consequence of amalgamation of three subsidiary companies on August 1, 1994. The three companies that were amalgamated were Ispat Finance Ltd, Ispat Computers Private Ltd & Sangam Commercial Private Limited.
1998 - Ispat Industries Ltd [IILs], a member of Ispat group, is set to enter the hot-rolled [HRs] coil market during the current financial year.
- Ispat Industries has, as of June 1998, received the largest assistance among the domestic companies from International Finance Corporation, the private sector arm of World Bank.
- The government of India has awarded the Comp. a 15-year licence to build & operate a telecommunications network in the Maharashtra Circle, including Mumbai & the state of Goa.
1999 - The memorandum of understanding was signed between Ispat, the world seventh largest steel producer & Europe-based Usinor, the world second largest steel producer, for acquisition of the above-mentioned companies.
- Ispat Industries Ltd, the flagship Comp. of M L Mittal group, has entered into an agreement with the Maharashtra State Electricity Board [MSEBs] for settlement of its outstanding power dues.
- Ispat Industries Ltd, flagship of Mittals-promoted Ispat Group, has suspended its contract with Swedish multinational Asea Brown Boveri [ABBs] for construction of Rs. 1,470, crore captive power plant at Dolvi in Maharashtra.
2002-Youngest son Vinod now becomes the managing director of Ispat Industries, the group flagship, a position which Pramod held earlier.
-Ispat Industries Ltd has informed BSE that Mr H B Lee has resigned from the Directorship of Comp. w e f August 01, 2002.
2003
-Ispat Industries limited informs that ICICI bank Limited is withdrawing its nomination of Mr.S K Maheshka & has nominated Mr.S Kishore as its nominee Director on the board of the company.
-Ispat Industries Board inducts M/s S R Botliboi and Co as auditors of company.
-Mr.Sanjeev Ghai is nominated as the Director on the Board of Comp. in place of Mr.R K M Prasad.
-Ispat Industries receives two contracts from Iraq directly from the customers.
-Mr. V Prakash has been nominated as a Director in place of Mr S Kishore
-The shareholders have approved to delist it equity shares from Delhi and Ahmedabad Stock Exchanges.
2004
-Ispat-acquires NSC rolling mill sets out before time frame
2005
-Ispat acquires Kremikovtzi of Bulgaria
2006
-GSHL appoints Lalit Kumar Sehgal as CEO of Zisco
2007
-Ispat Industries Ltd has entered into a Memorandum of Understanding [MOUs] on January 10, 2007 with Government of Chhattisgarh for setting-up a coal-based 600 MW power project.
2008
- Ispat Industries Ltd has appointed Dr. Basudeb Sen & Mr. Satya Pal Talwar as Additional Directors under section 260 of Companies Act, 1956.
