Erstwhile Diamond bags Rs. 800-mn worth contract

Ahmedabad: Vadodara firm bags Rs 80cr order.

Erstwhile Diamond Cables Ltd, Diamond Power Infrastructure Ltd, has bagged a Rs 80-crore order from two EPC contracting firms.

The Vadodara-based company, which is likely to acquire a European company by the end of January 2008, will be manufacturing and supplying transmission and distribution (T&D) conductors for the firms.

According to a senior official, the company would be raising around Rs 250 crore for the acquisition for which it is one of the bidders.

To be raised either through FCCBs/GDRs/ADRs or qualified institutional placements (QIPs) as per Securities and Exchange Board of India (Sebi) guidelines, the eventual equity dilution will amount to around 5 per cent at current stock prices, said the official.

Currently, present in the domestic T&D market, Diamond Power hopes to bag several overseas contracts as well after the successful European acquisition.

The company has over 20 T&D projects including manufacturing and supply of components coming up in Gujarat, apart from Rajasthan and Chhattisgarh.

With several working capital requirements, Diamond Power had raised around Rs 250 crore earlier in October.

The company is expanding its manufacturing facility, apart from setting up HT (high tension) and LT (low tension) power cables manufacturing unit in Vadodara.