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DAGGER FORST TOOLS · PDF file 2017. 1. 5. · DAGGER FORST TOOLS LIMITED (The Company was incorporated on 4th May 1965 as Dagger Forst Tools Limited) Registered Office: First Pokhran

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  • DAGGER FORST TOOLS LIMITED (The Company was incorporated on 4th May 1965 as Dagger Forst Tools Limited)

    Registered Office: First Pokhran Road Thane – 400606 Tel: +91-22- 25882531/32/33/34; Fax: +91-22- 25882540; Website: www.daggerforst.com

    Corporate Office: 1st Floor, Dalamal House, Nariman Point, Mumbai - 400 021. Tel: +91-22-2282 1173/74, Fax: +91-22-2204 7835 Contact person: Mr. Bhuwnesh Bansal, Company Secretary and Compliance Officer; E-mail: [email protected]

    COMPOSITE ISSUE OF 73,31,104 EQUITY SHARES OF RS.10/- EACH AGGREGATING TO RS. 2,900.00 LACS COMPRISING OF:

    1. RIGHTS ISSUE OF 33,24,954 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PREMIUM OF RS. 23 PER SHARE (i.e. AT A PRICE OF RS. 33 PER SHARE) AGGREGATING TO RS. 1,097.23 LACS TO THE EXISTING EQUITY SHAREHOLDERS OF THE COMPANY IN THE RATIO OF 5 EQUITY SHARES FOR EVERY 7 EQUITY SHARES HELD AS ON JULY 06, 2007 (RECORD DATE)

    2. PUBLIC ISSUE OF 40,06,150 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 45 INCLUSIVE OF PREMIUM AGGREGATING TO RS. 1,802.77 LACS INCLUDING PROMOTERS CONTRIBUTION OF 4,00,000 EQUITY SHARES FOR CASH AT A PRICE OF RS. 45 INCLUSIVE OF PREMIUM AGGREGATING TO RS. 180.00 LACS. THUS NET OFFER TO PUBLIC IS 36,06,150 EQUITY SHARES FOR CASH AT A PRICE OF RS. 45 INCLUSIVE OF PREMIUM AGGREGATING TO RS. 1622.77 LACS

    THE FACE VALUE OF THE EQUITY SHARE IS RS. 10/- PER EQUITY SHARE AND THE RIGHTS ISSUE PRICE OF RS. 33 IS 3.3 TIMES OF THE FACE VALUE AND THE PUBLIC ISSUE PRICE OF RS. 45 IS 4.5 TIMES OF THE FACE VALUE.

    THE NET PUBIC ISSUE WOULD CONSTITUTE 30.09 % OF THE POST ISSUE PAID UP CAPITAL OF THE COMPANY.

    GENERAL RISKS Investments in equity and equity related securities involve a degree of risk and investors should not invest any funds in this 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 this Issue. For taking an investment decision, investors must rely on their own examination of the Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of this Offer Document. Specific attention of the investors is invited to the summarized and detailed statements in Risk Factors beginning on page vii of this Offer Document.

    GRADING The issue has not been graded by any Credit Rating Agency

    COMPANY’S ABSOLUTE RESPONSIBILITY

    The Company having made all reasonable inquiries, accepts responsibility for and confirms that this Offer Document contains all information with regard to the Company and the Issue, which is material in the context of the Issue, that the information contained in this Offer Document 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 makes this Offer Document as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.

    OFFER DOCUMENT Dated 23rd July, 2007

    (Comprising Letter of Offer for the Rights Issue Component and Prospectus for the Public Issue Component)

    LISTING The existing equity shares of the company are listed on The Bombay Stock Exchange Limited, the Designated Stock Exchange. The Equity Shares to be issued through this issue will also be listed on the Bombay Stock Exchange Limited. The Company has received in-principle approval from the Stock Exchange for listings of the equity shares issued pursuant to the Rights Issue vide their letter no. DCS/PREF/SM/ IP-RT/316/07-08 dated May 11, 2007. The company has received an in principle approval for listing of the equity shares issued pursuant to the Public Issue from the Stock Exchange vide their letter no. DCS/IPO/SC/IPO-IP/0236/2006-07 dated May 11, 2007.

    ISSUE SCHEDULE RIGHTS ISSUE PUBLIC ISSUE

    OPENS ON : 06TH AUGUST, 2007 OPENS ON : 27TH AUGUST, 2007

    LAST DATE FOR RECEIVING CLOSES ON : 03RD SEPTEMBER, 2007 REQUESTS FOR SPLIT FORMS : 20TH AUGUST, 2007

    CLOSES ON : 05TH SEPTEMBER, 2007

    CENTRUM CAPITAL LIMITED SEBI Regn No. INM000010445 UIN No. 100016915 AMBI Reg. No: AMBI /087 59, Krishna Chambers,Sir Vithaldas Thakersey Marg, New Marine Lines MUMBAI 400 020. Tel: +91-22- 4030 0500 • Fax: +91-22- 4030 0510 Website: www.centrum.co.in • Email: [email protected] Contact Person: Ms. Amandeep Sidhu

    INTIME SPECTRUM REGISTRY LIMITED SEBI Regn No. INR000003761 UIN No. 100002071 C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), MUMBAI 400 078. Tel: +91 - 22 - 2596 0320 • Fax: +91 - 22 -2596 0329 Website: www.intimespectrum.com Email: [email protected] Contact Person: Mr. Vishwas Attavar

    LEAD MANAGER REGISTRAR TO THE ISSUE

    C M Y K

    C M Y K

  • TABLE OF CONTENTS

    TITLE Page No.

    SECTION I: DEFINITIONS AND ABBREVIATIONS ......................................................................................... i

    SECTION II: RISK FACTORS ........................................................................................................................... vi

    FORWARD-LOOKING STATEMENTS AND MARKET DATA ........................................................................... vi

    RISK FACTORS .................................................................................................................................................. vii

    SECTION III: INTRODUCTION .......................................................................................................................... 1

    SUMMARY .......................................................................................................................................................... 1

    GENERAL INFORMATION ................................................................................................................................. 6

    CAPITAL STRUCTURE ...................................................................................................................................... 9

    OBJECTS OF THE OFFERING .......................................................................................................................... 23

    BASIS FOR ISSUE PRICE ................................................................................................................................. 31

    SECTION IV: ABOUT DAGGER FORST TOOLS LIMITED ............................................................................. 40

    INDUSTRY OVERVIEW ..................................................................................................................................... 40

    BUSINESS OVERVIEW ...................................................................................................................................... 46

    HISTORY AND CORPORATE STRUCTURE OF THE COMPANY................................................................... 61

    MANAGEMENT OF THE COMPANY ................................................................................................................. 64

    PROMOTERS OF THE COMPANY.................................................................................................................... 72

    SECTION V: FINANCIAL STATEMENTS ......................................................................................................... 81

    FINANCIAL INFORMATION OF THE COMPANY ............................................................................................. 81

    FINANCIAL INFORMATION OF GROUP COMPANIES .................................................................................... 111

    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION ....................................................................................................................... 138

    SECTION VI: LEGAL AND OTHER INFORMATION ........................................................................................ 146

    OUTSTANDING LITIGATIONS AND MATERIAL DEVELOPMENTS................................................................ 146

    GOVERNMENT APPROVALS/LICENSING ARRANGEMENT .......................................................................... 173

    SECTION VII: REGULATORY AND STATUTORY DISCLOSURES ................................................................ 176

    SECTION VIII: OFFERING INFORMATION ...................................................................................................... 187

    TERMS OF THE ISSUE ...................................................................................................................................... 187

    ISSUE PROCEDURE.......................................................................................................................................... 205

    SECTION IX: DESCRIPTION OF EQUITY SHARES AND TERMS OF THE ARTICLES OF ASSOCIATION 217

    SECTION X: OTHER INFORMATION ............................................................................................................... 253

    MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTIONS ............................................................... 253

    DECLARATION ................................................................................................................................................... 255

  • i

    SECTION I: DEFINITIONS AND ABBREVIATIONS

    I. CONVENTIONAL / GENERAL TE

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