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History of Indian Seamless Metal Tubes Ltd.

YEAR EVENTS 1977 - The Comp. was incorporated on 29th July, as a public limited company. The main objective of Comp. is to manufacture seamless tubes, tubular, hollows, hydraulic cylinder tubes, axle tubes, axles, steel rings & shells.

1978 - In October, the Comp. entered into a technical collaboration agreement with Manneshmann Demag Metallverformung Zweigniederlassung Der Mannesmen Demag Aktiengeselischaft, Monchengladbash 1, West Germany [formerly Zweigniederlassung der Demag Ag Demag Meers] referred to hereinafter as Demag Meer, for a consideration of DM 617,400 for technical services under the agreement.

1979 - The following shares were issued before the public issue: 4,700 shares to signatories to the Memorandum of Association; 2,26,500 shares to directors, etc.; shares to B.R. Taneja; 19,800 shares to O.P. Kakkar; 29,500 shares to B.R. Raneja & his relatives & 1,00,000 shares to SICOM. 4,50,000 shares were offered at par to the public in July.

1982 - 3,60,000 Right Equity shares issued at par in prop. 2:5 in March 1981.

1985 - Balaji Tubes Private Ltd., became a subsidiary of company.

- 9,45,000 Rights Equity shares issued at par in propn. 3:4.

1989 - Significiant breakthrough was achieved in new applications such as petrochemicals & fertilisers, boilers & high pressure vessels & oil sector including refineries & pipelines.

- The Comp. received a letter of intent to increase the capacity from 30,000 TPA to 50,000 TPA.

- 16,53,750 Bonus shares issued in prop. 3:4.

1990 - The Comp. registered improved profits due to its emphasis on production of value added products, cost control methods & upgradation of quality at all levels. During the year, the Comp. established production of steering column tubes, a 100% import substitution product for two-wheeler industry.

- The Comp. set up a cold pilger project at a cost of Rs. 300 lakhs & installed 3 cold pilgers along with a can milling machine & other auxiliary equipments.

- The Comp. entered into two altogether new areas viz., the business of lease financing & aviation. The Comp. acquired Bliss Finalease [Indias], Ltd., engaged in the business of lease financing Approval was received to change its name to 'Indian Seamless Financial Services Ltd.'

- Manufacturing facilities were being set up at Hosur in Tamil Nadu, in technical collaboration with Scheibe Flugzeuban of Germany.

- During November-December, the Comp. issued 7,57,575 - 14% secured fully convertible debentures of Rs. 220 each on Rights basis in the proportion 1 debenture: 5 equity shares held. Additional 1,13,636 debentures were allotted to retain over-subscription.

- Simultaneously, another 37,879 - 14% convertible debentures were issued to employees [including Indian working directorss]/workers of Comp. on an equitable basis. Only 23,765 debentures were taken up. 6,114 debentures & 8,000 debentures were allotted to Indian Bank Mutual Fund & Canbank Mutual Fund respectively.

- Rs. 100 of face value of each debenture was to be converted into two equity shares of Rs. 10 each at a premium of Rs. 40 per share on the expiry of 9 months from the date of allotment of debentures.

- The balance of Rs. 120 of face value of each debenture was to be converted into two equity shares of Rs. 10 each at a premium of Rs. 50 per share on the expiry of 18 months from the date of allotment of debentures.

- Simultaneous to the convertible debenture issue in November, the Comp. issued another 5,00,000 - 14% secured redeemable non-convertible debentures of Rs. 100 each on Rights basis in the proportion 7 debentures: 50 equity shares held. [all were taken ups]. Additional 75,000 debentures were allotted to retain oversubscription.

- These debentures were to be redeemed at a premium of Rs. 5 per debenture in three equal instalments on the expiry of 6th, 7th & 8th year respectively from the date of allotment of debentures.

1991 - During the year, one more cold pilger mill was commissioned to enlarge the size range of cold pilger bearing tubes.

- 18,17,132 Shares allotted in conversion of debentures.

1992 - 44,039 No. of equity shares allotted to financial institutions [prem. Rs. 5 per shares] in conversion of loan. Another 33,030 No. of equity shares allotted to financial institutions as bonus shares in lieu of their entitlement in respect of shares allotted above. 18,17,132 No. of equity shares allotted [prem. Rs. 50 per shares] in conversion of Part `B' debentures.

1993 - During March, the Comp. issued 4,54,205. Zero percent fully convertible debentures of Rs. 270 each on rights basis to the existing shareholders in the proportion of 3 debentures: 50 No. of equity shares held. All were taken up.

- Another 22,710 - zero per cent fully convertible debentures of Rs. 270 each were offered to the employees. Only 700 debentures taken up. The balance 22,010 debentures not taken by employees were allowed to lapse.

- Part `A' of Rs. 130 of each debenture was converted into 1 equity share of Rs. 10 per each at a premium of Rs. 120 per share on the date of allotment of debentures. Accordingly 4,54,905 equity shares were allotted during June.

- Part `B' of Rs. 140 of each debenture was converted into 1 equity share of Rs. 10 each at a premium of Rs. 130 per share on the expiry of 12 months from the date of allotment of debentures.

- Simultaneous to the above issue of convertible debentures the Comp. issued 7,57,008 - 16% Non-convertible debentures of Rs. 190 each with detachable warrants on rights basis in the proportion of 1 debenture : 10 equity shares held. All were taken up.

- Another 37,850 - 16% non-convertible debentures of Rs. 190 each were offered to the employees. Only 150 debentures taken up. The remaining 37,700 debentures not taken by employees were allowed to lapse.

- Each Non-convertible debentures was entitled to receive a detachable warrant entitling the holder to a right to apply for & get allotted one equity share of Rs. 10 each at a premium of Rs. 140 per share after the expiry of twenty four months from the date of allotment of debentures. The debentures will be redeemed in 3 annual instalments of Rs 63, Rs. 63 & Rs. 64 each on the expiry of 8th, 9th 10th year respectively from the date of allotment.

- 4,54,905 No. of equity shares allotted on conversion of Part `A' of zero percent fully convertible debentures.

1994 - The project for enhancing the capacity of Cold Rolled rings was completed. 132 KV power line sub-station was commissioned during the year.

- The Comp. undertook number of projects for cost reduction and quality upgradation to enhance the competitiveness & profitability.

- During December, the Comp. issued 29,47,597 - 10% Fully Convertible Debentures [FCDss] of Rs. 125 each for cash at par on Rights basis to the existing shareholders in the proportion 3 FCD : 10 equity shares held [all were taken ups].

- The FCDs was to be converted into 1 equity share of Rs. 10 each at a premium of Rs. 115 per share after 17 months from the date of allotment.

- Simultaneous to the 10% FCDs issued, the Comp. issued 14,03,617 - 12.5% Secured non-Convertible Redeemable Debentures [NCDWss] of Rs. 150 each for cash at par with detachable warrants on Rights basis in the proportion of 1 NCDW : 7 equity shares. All were taken up.

- Each NCDW was entitled to receive a detachable warrant entitling the holder to a right to apply for & get allotted 1 equity share of Rs. 10 at a premium of Rs. 140 per share between 36 months & 60 months from the date of allotment of NCDWs.

- The NCDWs was to be redeemed in 3 annual instalments of Rs. 50 each on the expiry of 8th, 9th, & 10th year respectively from the date of allotment. - 4,54,905 No. of equity shares allotted on conversion of Part `B' of Zero per cent FCDs. 5,00,000 shares issued at a premium of Rs. 208 per share to U.T.I. on private placement basis. 8,45,429 shares allotted to the shareholders of erstwhile Seamless Tubes and Technologies [Indias] limited pursuant to the Scheme of Amalgamation.

1995 - The capacity utilisation of tubes as well as Rings division increased. The Comp. launched five new downstream products during year.

- The Comp. issued 14,03,617 - 12.5% non-convertible debentures of Rs. 150 each were issued along with detachable warrants on Rights issue. The warrant entitles the holder to apply for 1 equity shares of R. 10 each at a premium of Rs. 140 per share from 36 months from the date of allotment i.e. 13th February.

- These debentures are redeemable in 3 equal instalments on 13.2.2003, 17.02,2004 & 13.02.2005.

1996 - The Comp. maintained operations at a satisfactory level despite general slow-down in the industrial growth.

- The Comp. undertook project of increasing the capacity of rings & to create balancing capacities in critical operations of rolling mill so as to achieve better capacity utilisation of the desired product-mix. The Comp. also proposed to increase cold rolled products capacity through better layout & by adding some balancing/auxiliary equipment to improve productivity & reduce costs.

- ISMT Holdings limited a wholly owned subsidiary of Comp. was amalgamated with the Comp. effective 1st July.

- 29,47,143 No. of equity shares allotted [prem. Rs. 115s] on conversion of 10% fully convertible debentures.

1997 - Sales showed a modest 5% increase despite severe recession in the automobile section.

- 31,93,116 No. of equity shares of Rs. 10 each issued as fully paid bonus shares.

1998 - The Hollow products development strategy was focused on delivering 'Ready to Fit products' to meet the increasing needs of customers. The products so developed, go straight to customer assembly lines.

- The Comp. signed a settlement for Special Despatch Incentive Scheme based on the annual despatches to boost the productivity.

2000 - The Comp. & Kalyani Seamless Tubes have decided to rename the merged Comp. as The Indian Seamless Metal Tubes Ltd.

- Crisil has downgraded its rating to company Rs. 210.5 mn. NCDs issue from BB+ to D & for Fixed Deposit programme from FB+ to FD.

2001 - Indian Seamless Metal Tubes limited has signed a five-year supply contract valued at $36 million with the UK-based Invensys for supplying tubing.

2002-Indian Seamless Metal Tubes Ltd has informed that the Board of Directors at its meeting held on December 16, 2002 approved the appointment of Mr Salil Taneja, Director as Executive Vice Chairman, Mr Rajiv Goel, Joint Managing Director as Executive Vice Chairman of company, Mr N Chandra, Director as Managing Director & Mr J P Sureka, Vice Chairman to act as a Director.

2006

-steel manufacturer Indian Seamless Metal Tubes Ltd [ISMTs] has signed a proposal of cooperation with Boulder Steel Ltd of Australia & Breitenfield Group of Austria for setting up of seamless tubes & steel mill in Australia.