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Surana Tele board okays 3:2 bonus

Our Bureau

HYDERABAD, April 9

SURANA Telecom Ltd, the Hyderabad-based company, engaged in manufacture of jelly-filled telephone cables, jointing kits and optical fibre cables, has decided to issue bonus shares in the ratio of three shares for every two held to its shareholders.

Following improved performance, the board of directors of Surana Telecom, at a meeting held here on Monday, decided to recommend the issue of bonus shares to the shareholders. Consequent to the bonus offer, the total equity is expected to go up by Rs 4.5 2 crore to Rs 11.30 crore.

The Managing Director of Surana Telecom, Mr Narender Surana, told Business Line that the company had embarked on a plan to manufacture optical fibre and optical fibre cables at its proposed unit at Goa. While the construction of the building and equipmen t is underway, the unit is likely to commence production by September 2001.

The company management preferred Goa to leverage the existing tax structure there. It is also planning to manufacture jelly-filled cables and accessories for cable jointing of both copper and optical fibre cable at the Goa facility.

Bullish on the telecom sector and optical fibre business, Surana Telecom has, for the first time, exported optical fibre and optical fibre cables worth Rs 4.80 crore during 2000-2001 against a turnover of Rs 15 lakh last year.

The company has also booked export orders worth Rs 1.5 crore for the first quarter in the current year and has targeted approximately Rs 10 crore this year. Its revenue has gone up from Rs 68 crore last year to Rs 86.50 crore during 2000-2001. The commen surate profit was Rs 5 crore and Rs 10 crore respectively.

Taking into consideration the current financial position of the company, Mr Surana opined that the company would be in a position to maintain and have better reserves after the bonus issue.