History of Lloyds Steel Industries Ltd.
YEAR EVENTS 1970 - The Comp. was incorporated as a Pvt. limited on 27th April under the name of Gupta Tubes & Pipes Pvt. limited The Main Objects of the Comp. is Designing & Fabrication of various chemical, pharmaceutical & other machinery & structurals such as air/gas/liquid structurals, distillation columns, heat exchangers, LPG bullets, pressure vessels, reactors, tanks and road tankers & manufacture of steel pipes & tubes & steel castings.
1977 - The Comp. entered into the field of design & fabrication of shell & tube heat exchangers.
1978 - A separate Air Drying Plant [ADPs] division to cater to users of air & gas drying systems was started in August.
- The Comp. also set up a full-fledged design department during the year.
1980 - All shares taken up by signatories to the Memorandum of Association, Promoters, Directors, etc.
1982 - In April a full-fledged project division was established.
- 17,500 shares issued to promoters, etc.
1983 - 12,500 shares issued to promoters etc.
1984 - The Comp. commissioned a new foundry at Murbad.
1985 - The name of Comp. was changed to Lloyds Steel Industries Pvt, limited on 10th September. The Company status was changed to that of Public Limited Comp. with effect from 3rd June, 1986.
- The Comp. set up its first work shop at Andheri, a suburb of Mumbai.
- Equity shares sub-divided. 4,00,000 Rights shares issued at par in prop. 4:5. 6,00,000 Bonus shares issued in prop. 2:3 in December 1985.
1986 - The Comp. undertook modernisation of its existing workshops at Andheri & Murbad.
- 15,00,000 No. of equity shares issued [Prem. Rs 8 per shares] of which 3,00,000 shares were offered & allotted as Rights. Out of remaining 12,00,000 shares, the following shares were reserved & allotted on a preferential basis:
- [is] 75,000 shares to employees, etc.;
- [iis] 24,000 shares to business associates & 4,00,000 shares to NRIs. The balance 7,01,00 shares were offered for public subscription during September.
- Additional 3,75,000 shares were allotted to retain oversubscription [75,000 shares as Rights; 18,700 shares to employees, etc.; 6,000 shares to business associates; 1,00,000 shares to NRIs & 1,75,300 shares as Rights; 18,700 shares to employees, etc.; 6,000 shares to business associates; 1,00,000 shares to NRIs & 1,75,300 shares to the publics].
1988 - A new unit was set up at Murbad as a part of expansion of the existing activities.
- The Comp. entered into technical tie-ups with 8 internationally renowned companies in the engineering sector.
- The Central Government gave the clearance for a project to manufacture 1.5 lakh per annum of hot rolled carbon steel strips at Wardha, Maharashtra.
1989 - All the 3 units viz., Andheri, Murbad i & II as also 5 major project sites were equipped with integrated fabrication facilities including heat treatment, metal forming stress relieving automatic plate bending, etc.
- A network of committed ancillary units for various machinery and allied jobs were developed.
- Technical arrangements were made with Mannesmann Demag Huttentechnik Metallgeuinnung [MDHs], a division of Mannesmann Demag AG, West Germany for manufacture, procurement, supply and demonstration of performance guarantees of imported equipment and for deputation of MDH personnel to supervise erection and commissioning of plant & to train the Company personnel. The agreement provides for a payment of DM 42,140,000 in five instalments to MDH.
- The Comp. also signed an agreement with Metallurgical & Engineering Consultants [Indias], Ltd., [MECONs] for rendering detailed engineering site supervision services, commissioning and inspection services for project.
- The Comp. received a letter of intent from ONGC for one offshore rig. The rig was to be offered to ONGC towards the end of year. However, the Comp. couldn't import the rig during 1990-92 to deliver it to ONGC due to foreign exchange crunch.
- The Comp. started negotiations for upward revision in the charter hire rates as the earlier rates turned out to be uneconomical with the devaluation of rupee. Also, negotiations were on with Oil India, limited & ONGC for further offers of onshore/offshore rigs.
- The Comp. issued 1,50,000-14% secured redeemable non-convertible debentures of Rs 100 each on private placement basis with UTI, LIC, GIC & its subsidiaries. These debentures are redeemable at a premium of 5% in five equal instalments beginning at the end of five years from the allotment date, i.e. 8th August.
- 16,87,500 Bonus shares issued in propn. 1:2.
1990 - The Comp. incurred capital expenditure of Rs 555 lakhs on further expansion & modernisation of units at Andheri and Murbad & at four project sites.
- The Comp. raised a sum of Rs 138.29 crores during the year through rights/public issue of fully convertible debentures.
- The Comp. privately placed, 2,00,000-14% non-convertible debentures of Rs 100/- each with UTI & LIC. These debentures are redeemable at a premium of 5% in five equal instalments beginning at the end of five years from the date of allotment, i.e. 22nd May.
- During November, the Comp. offered 12,65,625-14% secured fully convertible debentures of Rs 350 each on Rights basis in the proportion 25 debentures: 100 equity shares held [all were taken ups]. Additional 34,375 debentures were allotted to retain oversubscription.
- Simultaneously another 63,283-14% debentures of Rs 350 each were issued to employees under the Employees' stock option. None were taken up & all were allowed to lapse.
- Simultaneous to the Rights issue, the Comp. also issued through prospectus 19,62,946-14% secured fully convertible debentures of Rs 350 each of which the following debentures were reserved for allotment on a preferential basis: [is] 4,28,572 debentures to NRIs on repatriation basis [all were taken ups]; [iis] 98,147 debentures to employees [including Indian working directorss]/workers of Comp. on equitable basis [only 78,340 debentures taken ups].
- The remaining 14,36,227 debentures, along with 19,807 debentures not taken up by employees', were issued to the public. Additional 2,94,442 debentures were allotted to retain oversubscription [47,648 debentures to NRIs & 2,46,794 debentures to publics].
- Rs 175 [Part As] of face value of each debenture was to be converted into 5 No. of equity shares of Rs 10 each at a premium of Rs 25 per share on the expiry of 9 months from the date of allotment of debentures. The remaining Rs 175 [Part Bs] of the face value of each debenture was to be converted into such number of equity shares of Rs 10 each at such premium to be decided by CCI after 24 months from the date of allotment of debentures.
1991 - The Comp. foresee growth in their activities in liberalised business environment in the field of petrochemicals, fertilisers, refineries, etc. The Comp. was planning to diversify into engineering & supply steel plant equipments & power plants upto 20 MW capacity on turnkey basis.
1992 - The Comp. proposed to set up a plant to manufacture 2.25 lakh tonnes of cold rolled coils & one lakh tonnes of galvanised plain/corrugated [GP/GCs] sheets.
- The Comp. entered into MOU with Braun Utility Services. Corporation, New York, USA, for technical back-up for manufacture of power plant upto 20 MW. Also entered into a MOU with United Engineering Inc. [UEs], USA, for technical know-how & back up for manufacture of steel plant equipments.
- The Comp. signed an MOU with Suedrohrbau, GmbH and Co. of Germany for bidding of Cross Country Pipeline Project.
- 146,78,065 No. of equity shares allotted [Prem. Rs 25 per shares] in conversion of debs. Another 25,44,455 No. of Equity shares allotted [Prem. Rs 25 per shares] in lieu of cumulative interest.
1993 - 3,73,263 No. of Equity shares forfeited. 25,05,409 No. of Equity shares issued on conversion of Part `B' debenture.
1994 - The increase in turnover was attributed to improved working of engineering activities & the commissioning of hot rolled coils project at Wardha.
- During February, the Comp. offered 383,33,333 optionally fully convertible debentures of Rs 60 each for cash at par of which 1,91,66,667 debentures were offered to the existing equity shareholders [only 1,69,83,368 debentures were taken ups]. 38,33,333 debentures were offered on a preferential basis to Indian financial institutions/Mutual Funds [all were taken up.s] 65,000 debentures offered to the employees [41,300 debentures were taken ups]. 10,00,000 debentures offered to the shareholders of Lloyds Finance limited [All were taken ups].
- Remaining 79,05,001 debentures were offerred to the public along with unsubscribed portion, if any, from the above category. [All were taken ups] along with unsubscribed portion of above categorys].
- Rs 25 [Part `A's] of face value of each debenture was to be converted into one equity share of Rs 10 each at a premium of Rs 15 per share after 9 months from the date of allotment. The remaining Rs 35 [Part `B's] would be given two option. Option 1. [Equity Otions] - Part B of Rs 35 was to be converted into one equity share of Rs 10 each at a premium of Rs 25 per share on the expiry of 18 months from the date of allotment. Each part `B' debentureholders was to be entitled to get Rs 5 per debenture towards interest. Option II. [Deep Discount Bond Options].
- Part `B' of Rs 35 was to be converted into one deep discount bond of face value of Rs 40 [inclusive of interest of Rs 5 per debentures] on the expiry of 18 months from the date of allotment, which would mature on the expiry of 45th Month from the date of allotment for a value of Rs 60.
1995 - The Comp. launched galvanised sheets/coils which was well received in the market. To boost exports, the Comp. undertook to promote an overseas body at U.K.
- The Comp. undertook a project for development of special grade steels used in Oil & Natural Gas sector & in the Sugar Industry with technical association from Visveshvariya Regional College of Engineering, Nagpur.
- 36,497,419 No. of Equity shares allotted on conversion of Part `B' of optionally fully convertible debentures, 4,38,988 shares forfeited.
1996 - The Comp. proposed to put up a 80 MW captive power plant.
- The Comp. entered into technical collaboration agreements with: [is] With Vosper Thornycroft [U.K.s] Ltd., England for the manufacture of steering gears & non-retractable in stabilizers for Indian Navy for their war ships. [iis] With FMC Europe SA, France for manufacture of marine loading arms; & [iiis] With Bailieboro Co-op. Engineering Ltd., Ireland for the manufacture of dairy equipment.
- The Technical Collaboration with Vosper Thornycroft [UKs] Ltd. [VTCs], provided for supply of design engineering know-how and successful commissioning of plant for manufacture of steering gear, etc., & training of Company engineers at VTC plant at England.
- The Comp. jointly with SICOM promoted a Comp. under the name Sipta Coated Steels Ltd., for manufacture of GP/GC sheet.
- During March/April the Comp. offered 74,141,199 No. of equity shares of Rs 10 each at a premium of Rs 18 per share on right basis to the existing shareholders in the ratio of 64:100 alongwith detachable warrants in the ratio of One Warrant for every Ten Equity share held. Every Warrant holder was entitled to receive one equity share at a price of Rs 55 between 36 to 39 months from the date of allotment. All were accepted 75,20,685 warrants were allotted.
- Lloyds Realty Ltd., is a wholly owned subsidiary of Company.
1997 - The Comp. proposes to meet the rest of fund requirements through internal accruals.
- Lloyds Steel too is setting up a captive power plant, which is expected to cut costs drastically after being commissioned.
- The Comp. suo moto placed a proposal to cut down all expensive credit limits like LC, & in turn, has requested the banks to consider increasing the working capital limit.
1998 - The Rs.9.75-crore deep discount bond of Lloyds Steel Industries Ltd has been downgraded from C to D by Credit Rating Information Services Ltd [Crisils].
- Lloyds Steel merger with its subsidiary, Rs. 114-crore Lloyds Metals, would be further delayed as the financial institutions are yet to give the green signal.
- Lloyds Steel Industries Ltd, has entered into an agreement with Western Coalfields Ltd [WCLs] for opening an underground mine exclusively for use of Lloyds Steel.
1999 - Power Engineering Corporation, an Irish company, will pick up a 24 per cent stake in the coal-based, captive power company being set up by Lloyds Steel Industries Ltd [LSILs] called Vidarbha Power Ltd.
- LSIL has entered into a memorandum of understanding with the company local subsidiary, PEC Energy [Indias] Ltd, which will float an independent Comp. to provide operation and maintenance [O&Ms] services.
