OCL India Limited
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C M Y K LETTER OF OFFER August 19, 2006 OCL India Limited (The Company was originally incorporated as Orissa Cement Limited on October 11, 1949 under the Indian Companies Act, 1913 with the Registrar of Joint Stock Companies, Orissa at Cuttack. The Company obtained the certificate of commencement of business w.e.f. February 10, 1950. Name of the Company was changed to OCL India Limited w.e.f. January 15, 1996) Registered Office: AT/P.O. Rajgangpur 770 017, District Sundergarh, Orissa, India Telephone: + 91 6624 221212/220121; Fax: + 91 6624 220 933 Corporate Office: 11th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110 001 Telephone: + 91 11 2332 1212; Fax: + 91 11 2373 1333 E-mail: [email protected], Website: www.ocl.in, Compliance Officer: Mr. Rakesh Malhotra FOR PRIVATE CIRCULATION TO EQUITY SHAREHOLDERS OF THE COMPANY ONLY ISSUE OF 63,63,960 EQUITY SHARES OF RS. 2/- EACH FOR CASH AT A PREMIUM OF RS. 118 (ISSUE PRICE OF RS. 120) PER EQUITY SHARE ON RIGHTS BASIS TO THE ELIGIBLE EQUITY SHAREHOLDERS OF THE COMPANY IN THE RATIO OF 1 EQUITY SHARE FOR EVERY 6 EQUITY SHARES HELD ON THE BASIS OF BOOK CLOSURE DATES (SEPTEMBER 5 TO SEPTEMBER 9, 2006 (BOTH DAYS INCLUSIVE) AGGREGATING TO RS. 7636.75 LACS ISSUE PRICE: Rs. 120 PER EQUITY SHARE OF FACE VALUE OF Rs. 2/- Issue Price is 60 times of face value of the Equity Shares GENERAL RISKS Investments in equity and equity related securities involve a degree of risk and investors should not invest any funds in the Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in the Issue. For taking an investment decision, investors must rely on their own examination of the Issuer and the Issue including the risks involved. The securities have not been recommended or approved by the Securities and Exchange Board of India (SEBI) nor does SEBI guarantee the accuracy or adequacy of the Letter of Offer. Investors are advised to refer to the section titled ‘Risk Factors’ starting on page v of the Letter of Offer before making an investment decision in the Issue.efer to “Risk Factors” on page vi of the Letter of Offer before making an investment in this Issue. ISSUER’S ABSOLUTE RESPONSIBILITY The Issuer, having made all reasonable inquiries, accepts responsibility for and confirms that the Letter of Offer contains all information with regard to the Issuer and the Issue, which is material in the context of the Issue, that the information contained in the Letter of Offer is true and correct in all material respects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes the Letter of Offer as a whole or any such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The existing Equity Shares of the Company are listed on the National Stock Exchange of India Limited (NSE Limited), Bombay Stock Exchange Limited (the Designated Stock Exchange) (BSE Limited) and Bhubaneswar Stock Exchange. Our application for getting the Equity Shares voluntarily delisted from Bhubaneswar Stock Exchange is pending. The Equity Shares being offered in terms of the Letter of Offer will be listed at NSE Limited and BSE Limited. We have received in- principle approvals from BSE Limited and NSE Limited vide their letters dated May 4, 2006 and May 12, 2006 respectively for listing of the Equity Shares arising from the Issue. LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE UTI Bank Limited C B Management Services (Private) Limited Central Office: 111, Maker Towers F, Cuffe Parade, P-22, Bondel Road Mumbai 400 005 Kolkata 700 019 Tel: + 91 22 6707 4407 (Extn 1725) Tel: +91 33 2280 6692-94/2280 2486 Fax: + 91 22 22162467 Fax: +91 33 2287 0263 Email: [email protected], Website: wwww.utibank.com Email: [email protected] Contact Person: Mr. Rohit Shrivastava Contact Person: Mr. S. Ghosh ISSUE PROGRAMME LAST DATE FOR REQUEST FOR ISSUE OPENS ON ISSUE CLOSES ON SPLIT APPLICATION FORMS SEPTEMBER 25, 2006 OCTOBER 9, 2006 OCTOBER 27, 2006 C M Y K TABLE OF CONTENTS Chapters Page No. Definitions and Abbreviations ..................................................................................................................................... i Risk Factors .................................................................................................................................................................. vi Summary of Our Business and Financial Data .......................................................................................................... 1 General Information ..................................................................................................................................................... 6 Capital Structure .......................................................................................................................................................... 10 Objects of the Issue ...................................................................................................................................................... 16 Basis for Issue Price .................................................................................................................................................... 20 Statement of Tax Benefits ............................................................................................................................................ 23 Industry Overview ........................................................................................................................................................ 29 Our Business ................................................................................................................................................................ 37 Our History and Corporate Structure .......................................................................................................................... 51 Our Management ......................................................................................................................................................... 59 Our Promoters .............................................................................................................................................................. 69 Our Subsidiaries & Group Companies ....................................................................................................................... 73 Related Party Transactions .......................................................................................................................................... 87 Regulation and Policies............................................................................................................................................... 89 Dividend Policy ............................................................................................................................................................. 92 Our Audited Financial Statements .............................................................................................................................. 93 Management’s Discussion and Analysis of Financial Condition and Results of Operations ................................. 132 Statutory and Other Information .................................................................................................................................. 137 Stock Market Data ........................................................................................................................................................ 144 Government Approvals/Licensing Arrangement ....................................................................................................... 146 Outstanding Litigation .................................................................................................................................................. 154 Material Developments ............................................................................................................................................... 180 Terms of the Issue ........................................................................................................................................................ 181 Material Contracts and Documents for Inspections .................................................................................................. 198 Declaration ................................................................................................................................................................... 200 DEFINITION AND ABBREVIATIONS Conventional/General Terms Terms Description Beneficiary Account The demat account of the successful allottee to whom the shares are allocated Companies Act/Act The Companies Act, 1956, as amended from time to time Depository A depository registered with SEBI under the SEBI (Depositories and Participants) Regulations, 1996, as amended from time to time Depositories Act Depositories Act, 1996, as amended from time to time Depository Participant A depository participant as defined under the Depositories Act FEMA Foreign Exchange Management Act, 1999, as amended from time to time, and the regulations framed thereunder FII Foreign Institutional Investors (as defined under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995) registered with SEBI under