GHCL plans listing on London stock exchange

Gujarat Heavy Chemicals Ltd (GHCL) announced at the end of September 2006 that it plans to list on London“s AIM stock exchange by mid-2007 and is to begin restructuring its current operations.
The c…

Gujarat Heavy Chemicals Ltd (GHCL) announced at the end of September 2006 that it plans to list on London“s AIM stock exchange by mid-2007 and is to begin restructuring its current operations. The company, at present, operates both its soda ash and textile businesses under a single umbrella, and the restructuring will lead it to adopt a more pure play structure to help it meet some of the admission criteria of AIM. GHCL“s returns from the textiles and soda ash business are approximately in the ratio of 1:4. “We are currently evaluating various structures for our operations and will go ahead with the one that makes the most business sense. The final plans on the restructuring will be laid out by the end of the year and the execution should begin after that,” said Nikhil Sen, head (strategy and international business), GHCL. “We have been advised by the global investment community that a pure play structure, clearly separating the textile and soda ash businesses, would make more business sense and enhance shareholder value, so the company is evaluating its options”, he added but refused to divulge details on the size of the proposed float. GHCL, which has interests in soda ash, salt, textiles, ITeS and energy, has seven subsidiaries in the Netherlands, the US, Romania and one in India. It acquired American brand Dan River in January 2006 for USD 17.5 million and then acquired Rosebys, the UK“s largest home textile retail chain, in June 2006.