INFORMATION MEMORANDUM JUBILANT INDUSTRIES LIMITED Registered Office: Bhartiagram, Gajraula, District Jyotiba Phoolay Nagar, Uttar Pradesh 244 223, India Tel: +91-5924-252351 - 60 Corporate Office: 1A, Sector 16A, Institutional Area, Noida, Uttar Pradesh 201 301, India Tel: +91-120-251-6601, +91-120-251-6611 Fax: +91-120-251-6629 Website: www.jubilantindustries.com Contact Person: Ms. Sonia Niranjan Das Email: [email protected] Jubilant Industries Limited was incorporated on February 23, 2007 in Kanpur, Uttar Pradesh as a private limited company in the name and style of „Hitech Shiksha Private Limited‟ under the Companies Act, 1956 with the Registrar of Companies, Uttar Pradesh and Uttarakhand (“RoC”). With effect from March 16, 2010, our Company became a public limited company and the name of our Company was changed to „Hitech Shiksha Limited‟ and subsequently on June 8, 2010 our name was changed to our present name „Jubilant Industries Limited‟. The corporate identity number assigned to our Company is U24100UP2007PLC032909. For details of changes in the name of our Company and address of the Registered Office of the Company, please refer to “History and Certain Corporate Matters” of this Information Memorandum. Promoters of our Company: Mr. Shyam S Bhartia and Mr. Hari S Bhartia F Our Company is registered with the Registrar of Companies, Uttar Pradesh & Uttarakhand situated at 10/499 B, Allenganj, Khalasi Line, Kanpur, Uttar Pradesh 208 002, India. INFORMATION MEMORANDUM FOR LISTING OF 80,14,056 EQUITY SHARES OF ` 10/- EACH NO EQUITY SHARES ARE PROPOSED TO BE SOLD OR OFFERED PURSUANT TO THIS INFORMATION MEMORANDUM FOR PRIVATE CIRCULATION TO THE EQUITY SHAREHOLDERS OF THE COMPANY GENERAL RISKS Investment in equity and equity related securities involves a degree of risk and investors should not invest any funds 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. For taking an investment decision, investors must rely on their own examination of Jubilant Industries Limited, including the risks involved. The securities have not been recommended or approved by Securities and Exchange Board of India (SEBI) nor does SEBI guarantee the accuracy or adequacy of this document. Specific attention of investors is invited to the “Risk Factors” ISSUER’S ABSOLUTE RESPONSIBILITY Jubilant Industries Limited having made all reasonable inquiries, accepts responsibility for and confirms that this Information Memorandum contains all information with regard to Jubilant Industries Limited, which is material, that the information contained in the Information Memorandum is true and correct in all material aspects 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 make this document as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. LISTING ARRANGEMENT The Equity Shares of Jubilant Industries Limited are proposed to be listed on the Bombay Stock Exchange Limited (BSE), the designated stock exchange and the National Stock Exchange of India Limited (NSE). Our Company has submitted this Information Memorandum to the BSE and the NSE and the same is available on the Company‟s website www.jubilantindustries.com. The Information Memorandum would also be made available on the websites of the BSE, at www.bseindia.com and the NSE at www.nseindia.com. REGISTRAR AND SHARE TRANSFER AGENT ALANKIT ASSIGNMENTS LIMITED Alankit House, 2E/21, Jhandewalan Extension, New Delhi - 110055, Phone No: (011) 23541234 , 42541234 Fax No: (011) 42541967 Website : www.alankit.com E-mail : [email protected] Contact Person: Mr. Y K Singhal JUBILANT INDUSTRIES LIMITED INFORMATION MEMORANDUM TABLE OF CONTENTS SECTION 1 - GENERAL .......................................................................................................... 1 1.1 DEFINITIONS AND ABBREVIATIONS ................................................ 1 1.2 CERTAIN CONVENTIONS, USE OF MARKET DATA ....................... 4 1.3 FORWARD LOOKING STATEMENTS ................................................. 5 SECTION – 2 RISK FACTORS............................................................................................... 6 SECTION 3 – INTRODUCTION ........................................................................................... 10 3.1 SCHEME OF AMALGAMATION AND DEMERGER ........................ 10 3.2 SUMMARY OF FINANCIAL AND OPERATING INFORMATION .. 17 3.3 GENERAL INFORMATION .................................................................. 24 3.4 CAPITAL STRUCTURE ........................................................................ 27 3.5 STATEMENT OF SPECIAL TAX BENEFITS...................................... 39 SECTION 4 - ABOUT THE COMPANY ............................................................................... 45 4.1 INDUSTRY OVERVIEW ....................................................................... 45 4.2 BUSINESS OVERVIEW ........................................................................ 47 4.3 HISTORY AND CERTAIN CORPORATE MATTERS ........................ 51 4.4 OUR MANAGEMENT ........................................................................... 54 4.5 PROMOTERS AND GROUP COMPANIES OF OUR COMPANY ..... 66 SECTION 5 – FINANCIAL INFORMATION ....................................................................... 69 FINANCIAL INFORMATION OF GROUP COMPANIES ................................ 69 SECTION 6. MANAGEMENT‟S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ........................................... 126 SECTION 7 – OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS ... 128 SECTION 8 - REGULATORY AND STATUTORY DISCLOSURES ............................... 158 8.1 REGULATORY AND STATUTORY DISCLOSURES ...................... 158 8.2 MAIN PROVISIONS OF ARTICLES OF ASSOCIATION OF OUR COMPANY.......................................................................................................... 161 SECTION 9 - OTHER INFORMATION .............................................................................. 196 DECLARATION ................................................................................................................... 197 ii SECTION 1 - GENERAL 1.1 DEFINITIONS AND ABBREVIATIONS Unless the context otherwise indicates or implies, the following terms have the following meanings in this Information Memorandum and references to any statute or regulations or policies shall include amendments thereto, from time to time: Company Related Terms Term Description “Jubilant Life Sciences Limited” or Jubilant Life Sciences Limited, a public limited company (formerly Jubilant “JLL” or "JOL" Organosys Limited) having its registered office at Bhartiagram, Gajraula, District Jyotiba Phoolay Nagar, Uttar Pradesh 244 223, India “Pace Marketing Specialities Limited” Pace Marketing Specialities Limited, a public limited company having its or “PMSL” registered office at C-2 & C-3, Site-IV, Sahibabad Industrial Area, Sahibabad, District Ghaziabad, Uttar Pradesh 20101, India(*) “Speciality Molecules Limited” or Speciality Molecules Limited, a public limited company having its “SML” registered office at Bhartiagram, Gajraula, District Jyotiba Phlooay Nagar, Uttar Pradesh 244223, India(*) Amalgamation Appointed Date Close of business on March 31, 2010 Articles / Articles of Association Articles of Association of our Company Board of Directors / Board Board of Directors of our Company Demerged Undertaking Demerged Undertaking shall have the meaning ascribed to such term in “Scheme of Amalgamation and Demerger” Demerger Appointed Date Commencement of business on April 1, 2010 Effective Date Date of filing the Orders alongwith Form 21 with Registrar of Companies, Uttar Pradesh and Uttarakhand, i.e., November 15, 2010 Employees Employees shall have the meaning ascribed to such term under the Jubilant ESOP Equity Share(s) or Share(s) Equity Share of our Company having a face value of `10/- unless otherwise specified in the context thereof Group Companies Group Companies of our Company as listed in “Our Promoters and Group Companies” Information Memorandum This document filed with the Stock Exchanges is known as and referred to as the Information Memorandum. JIL or “Company” or “Our Company” Jubilant Industries Limited, a public limited company having its registered or “we” or “us” or “our” office at Bhartiagram, Gajraula, District Jyotiba Phoolay Nagar, Uttar Pradesh 244 223, India Jubilant ESOP The employee stock option scheme of JLL Listing Agreements The listing agreement to be entered into between our Company and the Stock Exchanges Memorandum/ Memorandum of Memorandum of Association of the Company Association Option Option shall have the meaning ascribed to such term under the Jubilant ESOP Orders Orders of the Hon‟ble High Court of Allahabad dated October 28, 2010 and November 8, 2010, approving the Scheme, and filed with the RoC on November 15, 2010 Promoter Group Promoter Group includes Jubilant Capital Private Limited, Jubilant Securities Private Limited, Jaytee Private Limited, Jubilant Retail Holdings Private Limited, Vam Holdings Limited, Nikita Resources Private Limited, Torino Overseas Limited, Cumin Investments Limited, Rance Investments & Holdings Limited, Ms. Kavita Bhartia, Mr. Priyavrat Bhartia, Mr. Shamit Bhartia and Jubilant Infrastructure