NAVIN FLUORINE INT. Share price

BackgroundMafatlal Industries Limited (MIL) the flagship company of ArvindMafatlal Group was incorporated on January 20 1913. MIL had:* textile units at Lower Parel and Mazagaon (both in Mumbai) NavsariNadiad and Ahmedabad (all three in Gujarat) with aggregate installedcapacity of 226276 spindles 2496 rotors 986 looms and processingfacilities for 1.55 lakh metres cloth per day.* Chemical units at Bhestan (Gujarat) and Dewas (Madhya Pradesh) havingfacilities to manufacture various organic chemicals CFC gasessynthetic cryolite dyes pharmaceutical intermediates etc. withaggregate installed capacity of 86160 tpa.* Real Estate and Investments viz. Mafatlal Centre at Nariman PointMafatlal House at Backbay Reclamation and Mafatlal Chambers at LowerParel arid investments in various group companies.The operations of MIL were profitable till 1997 with both the textileand chemicals Units earning gross profits. Thereafter it startedincurring losses which resulted in complete erosion of net worth as onSeptember 30 1999.THE COMPANY AND MANAGEMENTPolyolefins Rubber Chemicals Limited (PRCL) belongs to the industrialhouse of Arvind Mafatlal Group. It operates one of the large integratedfluorochemicals complex in India and supplies a wide range of bulk andspeciality fluorochemicals from its facility at Bhestan Surat. Itmanufactures dyes and drug intermediates at its Dewas facility. It hasquality systems accreditation with ISO 9002. It also has EnvironmentManagement System accreditation with ISO 14001 for Navin FluorineSurat. NFS was awarded the Five Star rating from British Safety Councilin February 2004.BRIEF HISTORY OF THE COMPANYNavin Fluorine Surat ("NFS") was established as a division of TheMafatlal Fine Spinning and Manufacturing Company Limited (MafatlalFine) and was known as Navin Fluorine Industries. Pursuant to thescheme of amalgamation Mafatlal Fine merged with Mafatlal IndustriesLimited (MIL) w.e.f. April 1 1993. Navin Fluorine Dewas ("NFD") wasestablished as a division of Mafatlal Industries Limited (MIL) and wasknown as Navin Chemical Enterprises.PRCL was incorporated on June 25 1998 under the Companies Act 1956and obtained certificate of commencement of business on August 7 1998.The shareholders of the Company at the Sixth Annual General Meetingheld on July 27 2004 have resolved to change the name of the Companyto "Navin Fluorine International Limited" subject to approval of theCentral Government. Accordingly the Company is taking steps for thechange of name.The registered office of the Company was previously located at C-37Off Thane Belapur Road Turbhe Navi Mumbai - 400 705. The registeredoffice was changed to 1st Floor Kalpataru Point. Kamani Marg Sion(E) Mumbai - 400 022 India from January 25 2003 because this wasthe office of the Erstwhile Chemical Division of MIL demerged intoPRCL.In terms of the BIFR Order the chemical units of MIL located at Dewasand Bhestan along with their assets (free of all encumbrances) weredemerged into PRCL (for details of the BIFR Order refer to Objects ofthe Issue on Page 22 of this LOF). The manufacturing facilities ofPRCL therefore consist of the two units: Navin Fluorine Surat("NFS") located at Bhestan Surat Gujarat and Navin Fluorine Dewas("NFD") located at Dewas Madhya Pradesh.CAPITAL HISTORYNo. of Shares Date of Face Value Issue Priceallotted Allotment (Rs.) (Rs.) 70 June 12 1998 10 10 20 October 3 1998 10 10 49910 December 11 2002 10 10 4999999 March 3 2003 10 Nil No. of Shares Nature of issue & Cumulativeallotted payment no. of shares 70 Subscription to Memorandum Cash 70 20 Further Issue Cash 90 49910 To raise capital to Rs. 500000 50000 as required by the Companies (Amendment) Act 2000 Cash4999999 As per the BIFR Order dated 5049999 October 30 2002 pursuant to the demerger of Chemical division of MIL these shares were allotted as fully paid-up shares to the shareholders of MIL without payment