Originally promoted by Mr Sarvesh Gooreah, company was engaged in hardware/computer business.However, last year, company has undergone complete restructuring with induction of new promoters and new business. Its name has already been changed to Cals Refineries Ltd as company is implementing 4.80 mn tonne per annum EOU crude refinery project. It has already identified 1000 acres land in Haldia which may be acquired in coming weeks. Total project cost estimated is around USD 950 mn (Rs 3700 crs). Company will be importing a running plant from Germany. Estimated to cost 1650 crs, company has already signed the agreement to purchase this running condition plant and already paid the advance money and signed contract with SCI for transportation of the plant. Recently, company had come out with GDR of USD 200 mn which was fully subscribed on 1st day itself. Now, company is launching FCCB for USD 250 mn. Thereafter , company tie up for ECB of around USD 250 mn.Finally, company will have QIP for balance funding in latter part of 08-09. Company hopes to start commercial production by Jan 2010. Mr Ramachandran, former chairman of IOC, has already joined the Board as Chairman. Some senior managers from RPL and Essar have also joined the company for fast implementation of the project. Mr Sunderrajan, earlier ED with an industrial group, has joined as CFO of Cals ltd. Mr Ravi, now a copromoter and an NRI, has big expertise in oil industry internationally. Finally, Mr Kansagra (of Spicejet) is also a copromoter now and also on the Board. It is really learnt that now Cals actually is a Spicejet group co and its name in near future will be changed to Spice Refineries Ltd.
Scrip is likely to be shifted out of Z group shortly as it has already got connectivity of CDSL as well.Until now, due to lack of visibility, scrip was being accumulated by some knowledgeable retail investors. However, of late, a Mauritius based FII has bought some quantity. Cals is now on the radar of some big investors and brokers as well.
Scrip had recently touched Rs 128/ Due to profit booking and bad markets, it has come down to Rs 95/ level. Essar oil has started trial production of its 7.50 mn tonne refinery for whcih capex was much much higher and quoting at Rs 320/. Investors can buy this scrip with perspective of 6 months as scrip can go upto Rs 175/ by then

Hemant K. Gupta
Centre for Development Of financial Treasure