Star Ferro and Cement Ltd (SFCL), the demerged business entity of Century Plyboards (India) Ltd, would be listed on the NSE and BSE in mid-October.
Sajjan Bhajanka, Promoter-Chairman of both the companies told Business Line that relevant nods from SEBI and exchanges have been obtained. “Preparation is on for listing of the newly formed company on October 15,” he added.
The board of SFCL on July 22 had issued and allotted one fully paid-up equity share of Re 1 face value each in the company for one share (of Re 1) held in Century Plyboards.
The Calcutta High Court had sanctioned the Scheme of Arrangement of CPIL in a May 17 order. The scheme separated the two entities — CPIL, primarily in the plywood, laminate and allied products business, and SFCL with interests in ferro alloys and cement.
The two operationally unrelated verticals of SFCL might further go through a process of separation. “We are working on a proposal that would separate the ferro alloy and cement businesses and the respective investments into two distinct entities. A formal proposal may be moved during this financial year,” Bhajanka explained.
According to him, though SFCL’s operating units are in the North-East and equally face inadequacy of grid power, the business dynamics and growth potential are different.
“The Meghalaya unit for ferro alloy, used in steel making, is encountering a serious cost issue related to power. It has a 13.8-MW captive power plant. It also recently started to purchase from Indian Energy Exchange to meet the shortfall. Price realisation has not been good for months. Had there been no excise exemption, things could have been really difficult,” he said.
Meanwhile, SFCL has begun coal mining operations in Nagaland and is looking for a hydro power project in Mizoram. It is also considering taking up mining of low grade iron ore in Assam to go up the value chain to produce ferro silicon.
The cement business is on a much stronger footing. The company has limestone quarrying (70-year life) and clinker operation in Meghalaya and a grinding unit in Assam. “Its realisation is among the best in the North-East,” Bhajanka said.
SFCL, formed with retrospective effect from April 1, 2012, saw its first AGM pass all resolutions unanimously.
jayanta.mallick@thehindu.co.in