History of Ambuja Cement Eastern Ltd.

1982

- The Comp. was incorporated on 17th June, & the Certificate of Commencement of Business was obtained on 11th February, 1983. It was promoted by Modi Industrial House & Madhya Pradesh Audyogik Vikas Nigam Ltd [MPAVNs]. The Comp. manufactures cement.

- The Comp. had under taken to set up a project to manufacture Portland Cement in Madhya Pradesh. The main plant & machinery was obtained from Polysius Ltd U K & their Indian associates Buckau Wolf India Ltd.

- The Comp. entered into a foreign collaboration agreement with Blue Circle Industries PC., U.K. [BCIs] for technical consultancy services.

1986

- 7 shares subscribed for by signatories to the Memorandum of Association. 334,99,993 shares then issued at par out of which 208,99,993 shares to promoters, directors, etc. [including 10,00,000 shares to NRIs on repatriation basiss] & 15,00,000 shares to MPAVN were reserved & allotted.

- Out of remaining 111,00,000 shares, the following shares were reserved for preferential allotment:

- [is] 25,00,000 shares to NRIs on repatriation basis [all were taken ups];

- [iis] 16,75,000 shares to employees of Comp. [including Indian working directors & employees of Modi Group Companiess] &

- [iiis] 2,22,000 shares to business associates of company.

- Out of [iis] & [iiis] above, only 1,93,450 shares were taken up. The balance 67,03,000 shares, along with 17,03,550 shares not taken up by employees & business associates, were offered for public subscription during January-February. 83,75,000 additional shares were allotted to retain oversubscription [4,86,950 shares to NRIs & 78,88,050 shares to the publics].

1987

- 25,00,000 shares issued at par as rights to Indian resident shareholders in prop. 1:15. Only 22,74,291 shares taken up.

1988

- The balance 2,25,709 shares out of rights issue of 1987-88 allotted privately.

1989

- The Comp. came under the provisions of Sick Industrial Companies [Sp. Provisionss] Act, 1985 & a reference was made to the Board for Industrial & Financial Reconstruction [BIFRs].

1990

- Forfeiture on 56,600 shares annulled.

1991

- The Company plan to expand the capacity from 11.5 lakh tonnes to 18 lakh tonnes.

- Subject to necessary approvals being obtained, the Comp. proposed to issue 458,00,920 rights equity shares of Rs. 10 each at a premium not exceeding of Rs. 2 per share in the proportion 1:1.

- In addition to the above rights issue, 5% of rights issue at a premium not exceeding Rs. 2 per share was to be offered to the employees, etc., of Comp. & promoter companies on an equitable basis.

- Issued 31,10,000 shares at par as rights in prop. 7:100 [all were taken ups] & 1,55,500 shares at par to employees [only 1,900 shares taken ups] in January.

1993

- 1,000 right shares kept in abeyance were issued.

1994

- Production declined to 10,31,219 tonnes due to excessive rains and floods which inundated the factory & limestome mines. The company suffered losses due to lower sales realisation & increase in interest liability.

1997

- The Scheme for rehabilitation was sanctioned by BIFR. Gujarat Ambuja Cements limited was inducted as Co-promoter for revival of company, the Board has reconstituted & the new management assumed charge in December.

- The name of Comp. has been change from Modi Cements limited to Ambuja Cement Eastern Ltd.

- 45,801,930 No. of equity shares of Rs.10 each has been reduced by 75% to 11,450,483 No. of equity shares of Rs. 10 each persuant to the rehabilitation scheme santioned by BIFR on 5th November; 116,000,000 No. of equity shares of Rs. 10 each fully paid up & 50,00,000 No. of equity shares of Rs. 10 each Rs. 750 called & paid up allotted to Gujarat Ambuja Cements limited pursuants to rehabilitation scheme sanctioned by BIFR on 5th November.

1998

- Modi Cements limited is being merged with Gujarat Ambuja Cements [GACLs], which holds a 93 per cent stake in the ailing company.

1999

- AMBUJA Cement Eastern limited [ACELs], in its transition from the erstwhile Modi Cement Ltd during its first full financial year, had to contend with more than establishing the `Ambuja Cement' brand in a market that was familiar with the Ambuja name but not the product.

2000

- The Comp. hold 166057827 equity shares of Rs. 10/- each in the company representing 93.58% of its share capital.

- Ambuja Cement Eastern limited will make a preferential issue of equity shares/any other security convertible into equity shares not exceeding 1,70,00,000 No. of equity shares of Rs 10 each to holding company, Ambuja Cement India Ltd.

2002

-Gujarat Ambuja loses its image as the lowest cost producer in the market due to acquisition.

2003

-Members approve for delisting of equity shares of Comp. from Delhi & MP stock Exchanges.

-Ambuja Cement awards equipment order for BHEL

2004

-Ambuja Cement Eastern shares delisted from Bhubaneswar Stock Exchange and Delhi Stock Exchange

-Ambuja Cements [Easterns] Ltd has succeeded in coming out of Board for Industrial & Financial Reconstruction [BIFRs] fold.