STAR PAPER MILLS Share price

The Company was incorporated on 31st August 1936. A plantwith an initial installed capacity of 6000 tpa for themanufacture of printing and writing papers from bhabargrass was set up at Saharanpur in U.P. and productioncommenced in 1938. In 1956-57 a programme forsubstantially expanding die capacity to 18000 tpa wasundertaken. The expansion scheme was completed in 1961 withtwo M.G. paper machines alongwith a chemical recoveryplant. The Company undertook balancing-cum-expansionschemes in 1966-67 and in 1970-71 to augment the pulpingcapacity. Another modernisation-cum-expansion scheme wasundertaken in 1977 to augment the power supply positionand the same was completed in 1980 with the commissioningof 5 MW turbine alongwith two coal fired boilers. Aneffluent treatment plant was also installed in 1980. TheCompany presently manufactures various grades of paperwith an installed capacity of 46200 tpa.The operations and working results as well as the financialposition of the Company started deteriorating from 1982-83onwards on account of various factors. Consequently theCompany came under the purview of BIFR in 1988 and aRehabilitating Scheme was undertaken in 1990. Afterimplementation of the rehabilitation scheme the Company''soperations witnessed a quick turnaround. The Company''snetworth became positive in 1990-91 and it has since beende-registered by BIFR. The Company has now been regularlypaying dividends since 1991-92.The Company was originally promoted by Seth BaldeodassBajoria and associates. In 1986 the management of theCompany was taken over by the Duncan Goenka Group headedby Mr G P Goenka through die acquisition of 52.24% of thethen Equity Share Capital of the Company. Consequent to thetakeover the management of the Company wasprofessionalised and adequate financial resources were madeavailable to the Company by the new promoters under thepurview of the BIFR scheme as a result of which theCompany''s accumulated losses were wiped off in 1991-92.As on 27.03.79 the Equity Share Capital of the Companyconsisted of 1793750 shares. On 28.03.79 the Companyallotted 896875 bonus shares in the ratio of 1:2 by way ofcapitalisation of General Reserves. On 14.03.91 theCompany allotted 2580000 shares to the new promoters forcash at par in terms5 of the BIER orders being thepromoters contribution for the rehabilitation of theCompany. On 06.07.92 the Company allotted 600000shares to the Financial Institutions pursuant to the optionexercised by them for conversion of their term loan. Thepresent Share Capital of the Company consists of 5870625Equity Shares.