1985 - The company was incorporated on 6th December, at Mumbai. The
company was promoted by Shri Deshbandu Kagzi and Shri
Kailashprasad Sanghai. The main objective of the company is
Processing of cotton, synthetic and blended fabrics.
1986 - 2,00,000 shares taken up by promoters, their friends, relatives,
etc. 8,00,000 No. of equity shares were, then, issued for cash at
par of which 2,00,000 shares were reserved for firm allotment to
promoters, their friends, directors, etc.
- Out of the remainining 6,00,000 shares, 2,96,000 shares reserved
for preferential allotment as follows:
- (i) 2,40,000 shares to NRIs on repatriation basis (all were taken
- (ii) 40,000 shares to employees of the Company; and
- (iii) 16,000 shares to business associates of the Company (only
19,000 shares taken up by employees and business associates).
- The balance 3,04,000 shares along with 37,000 shares not taken up
by employees/business associates were offered for public
subscription during April. Additional 2,50,000 shares allotted
to retain oversubscription (1,00,000 shares to promoters, etc.
46,900 shares to NRIs and 1,03,100 shares to public.
1987 - The company issued, simultaneously 6,56,000 No. of equity shares
of Rs. 10 each for cash at par and 1,05,000-14% secured
redeemable convertible debentures of Rs. 200 each with a right to
apply for either of the issues or both. Of the above, 6,25,000
No. of equity shares and 1,00,000 debentures were offered on
rights basis in the proportion 1:2 and 8 debentures for every
block of 100 equity shares held, respectively.
- The balance 31,000 No. of equity shares and 5,000 debentures were
reserved for preferential allotment of employees/workers of the
Company with a provision to allow the unsubscribed portion, if
any, to lapse. As regards equity shares, a total of 2,29,845
shares were taken up. The debenture issue was also
under-subscribed and 7,075 debentures were allotted on 29th
- As per the terms of debenture issue, Rs. 100 of each debenture
was to be converted into 10 equity shares of Rs. 10 each at par
at the end of 6 months from the date of allotment.
1992 - 70,550 No. of equity shares issued on conversion of Part 'B' of
Partly convertible Debentures of Rs. 200 each.
1994 - The company's factory, plant and machinery were taken over by
the Court receiver High Court of Mumbai. The company carried the
business of buying and selling of textile goods.