History of Steel Tubes of India Ltd.

YEAR EVENTS 1959 - The Comp. was incorporated as a private limited Comp. under the name & style of Shamlal Jankraj Pvt. Ltd., for setting up tube mill for manufacture of ERW steel at the Industrial Estate, Pologround, Indore, under small scale sector.

- The main objective of Comp. is to Manufacture steel tubes.

1966 - The name of Comp. was changed to Steel Tubes of India Pvt. Ltd.

1975 - The Comp. became a public limited Comp. on 13th November. The product mix was expanded to include a variety of applications in the bicycle, automobile, transformer general engeering, boiler, heat exchanger & furniture industries.

1981 - The Comp. undertook to set up a joint venture project in Singapore for manufacture of precision steel tubes. For this purpose, a new Comp. under the name & style of Steel Tubes of Singapore [Pvt.s] Ltd., was incorporated in January.

- 40,000 bonus equity shares of Rs. 100 each issued in prop. 1:1 in Aug. Shares then subdivided. 1,00,000 rights equity shares of Rs.10 each issued at par in prop. 1:8 in December.

1982 - The Comp. set up manufacturing facilities for production of better quality & wide spectrum of tubes & also expansion of capacity for manufacture CEW tubes from 2,000 tonnes to 6,000 tonnes, within the overall licensed capacity.

- 11,60,000 shares issued [prem. Rs.2 per shares] of which 2,60,000 shares reserved for preferential allotment to NRIs & 9,00,000 shares offered to the public in November.

1984 - 4,94,400 right equity shares issued at par in prop. 6:25 [fraction ignoreds].

1985 - The Comp. privately placed with UTI 1,20,000 - 13.5% convertible redeemable debentures of Rs.150 each at par. Rs.50 of face value of each of Comp. on 12th October. The remaining Rs.100 per debenture will be redeemed at par in 1992, 1993 & 1994 in instalments of Rs.35, Rs.35 & Rs.30 respectively. The rate of interest payable on these debentures was raised to 15%.

- 5,10,880 rights equity shares issued [prem. Rs.2 per share; prop. 1:5s] 25,544 No. of equity shares also issued [prem. Rs.2 per shares] to employees. 6,00,000 No. of equity shares allotted to UTI at par in the part conversion of deb. 600 No. of equity shares forfeited 85,000-15% pref. shares were also offered as rights to the shareholders. These pref. shares are redeemable after 8 years from the date of allotment.

1986 - A cold rolling mill was commissioned at Dewas.

1989 - 3,09,176 forfeited shares were reallotted.

1990 - DG set of 1000 KVA was installed. The Comp. embarked on a modernisation & balancing-cum-expansion scheme.

1991 - The Comp. issued 8,00,000-14% secured redeemable convertible debentures of Rs.100 each on rights basis in the prop. of 1 debenture : 5 equity shares held. Additional 1,20,000 debentures were allotted to retain oversubscription.

- Another 40,000-14% convertible debentures of Rs.100 each were offered to employees. All were taken up.

- Simultaneously with the right issue, the Comp. issued 6,60,000-14% convertible debentures of Rs.100 each through prospectus of which 33,000 debentures were reserved for allotment to the employees on an equitable basis but none were taken up. The remaining 6,27,000 debentures, along with 33,000 debentures not taken up by employees were offered to the public. Additional 99,000 debentures were allotted to the public to retain oversubscription.

- Part A of Rs.60 of each debenture was to be converted into 3 equity shares of Rs.10 each at a premium of Rs.10 per share at the end of 9 months from the date of allotment of Debentures. Accordingly 51,57,000 No. of equity shares were allotted on 1st April 1993.

- Part B of Rs.40 of each debenture will have a non-detachable warrant entitling the warrant holder a right to exchange Part-B of debenture into equity share[ss] at a price from the date of allotment of debentures. If any fractions arise upon the conversion of debentures, such fractions would be consolidated & sold & the proceeds would be distributed pro-rata among the debenture holders. For those who do not redeemed on the expiry of 7 years from the date of allotment of debentures.

1993 - 51,57,000 No. of equity shares allotted [prem. Rs.10s] on part conversion of debentures.

1994 - 2,98,461 No. of equity shares allotted to financial institution on conversion of loan. 29,44,540 No. of equity shares [prem. Rs.10s] allotted on conversion of debentures. [part-Bs].


-Out come of AGM

1. Delisting of equity shares from the Delhi & Madhya Pradesh Stock Exchanges.

2. To lease out the whole or any part of Tube & / or steel strip manufacturing facility including its associates plants & machinery, fixtures & fittings to M/s Euro Multi Business Products Private Ltd [EMBs] on such terms & conditions as more specifically set out in the draft agreement.

3. Make reference to the BIFR under Section 15 of Sick Industrial Companies Act, 1985 SICA