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C. Raja Rajeshwari

SHAREHOLDERS of Noble Explochem (NEL) can consider tendering their shares to the open offer. The offer is for mopping up 20 per cent of the share holding.

The offer price is Rs 7 for fully paid-up shares and Rs 2 for partly paid-up shares after making adjustments for the calls-in-arrears.

The acquirers are already on the board of the company, but they do not hold any shares. This offer is to augment their position with substantial acquisition of NEL's shares.

Given the company's unimpressive performance and the possibility of a complete shutting down of production, shareholders can offload their stake in the company. The department of explosives has restricted or banned the use of nitro glycerin-based explosive on May 10. This closure will be phased out in three stages.

The first stage commenced in 2002 by cutting down consumption by 50 per cent. The second phase is a 20 per cent decrease in consumption in 2004 and the remaining 30 per cent in 2006.

In 2002, the company discontinued the production of large diameter explosives. By 2006, the company has to phase out its production completely.

The company is engaged in nitro glycerin-based industry explosives used in mines. In 1994, the company was referred to Board for Industrial and Financial Reconstruction and Rs 22-crore debt from banks and financial institutions was written off.

Shareholders can tender their shares.

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