Glass manufacturer Sezal Glass is said to be raising about INR 18 crore through issue of shares to ad-for-equity investor Bennett Coleman & Co Ltd.“s arm Brand Equity Treaties Ltd., which will theref..
Glass manufacturer Sezal Glass is said to be raising about INR 18 crore through issue of shares to ad-for-equity investor Bennett Coleman & Co Ltd.“s arm Brand Equity Treaties Ltd., which will therefore have a 6.5% stake in Sezal. The company (formerly known as Sejal Architectural Glass Ltd.) began business as a glass trading retail outlet 20 years ago, and began processing with a unit in Charkop, followed by a processing unit at Silvassa. In January 2011, it signed a MoU with the Gujarat government on an intent to invest INR 750 crore for its second float glass manufacturing unit at Bharuch at Jhagadia, where it had started manufacturing at its first glassmaking around a year ago. According to the company, these expansion plans have enabled it to enter into interior products retailing. This could have been a trigger point for the deal with BCCL, which keeps a particular eye for small size firms with a consumer retail business that would need to use its media vehicles for advertising. BCCL is subscribing to the fresh shares at INR 9 a piece, a substantial premium to its current price. Sezal Glass was locked in lower circuit for the day after the price dropped 4.9% to INR 4.08 at BSE in early trading hours on Friday, after the company disclosed the preferential allotment plan. For the quarter ended September“10, the firm“s revenue stood at INR 83 crore with net loss of INR 20.8 crore largely due to interest cost of INR 19 crore and depreciation cost of INR 12 crore. It could use the money from BCCL to part pay the debt and partly to secure media advertising space for its retail operations.