Dagger Forst Tools (DFTL), part of Yash Birla Group, manufacturer of specialized high precision cutting tools viz. Broaches, Hobs, Shaper Cutters Shaving Cutters etc. in India, proposes composite (rights and public) issue of 73,31,104 equity shares of Rs 10 each aggregating to Rs 29 crore.

The composite Issue comprises of (A) 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 lakh 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). (B)  Public Issue of 40,06,150 equity shares of Rs 10 each for cash at a price of Rs 45 per equity share inclusive of premium aggregating to Rs 1,802.77 lakh including promoters contribution of 4,00,000 equity shares for cash at a price of Rs 45 per equity share inclusive of premium aggregating to Rs 180.00 lakh. 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 lakh. The net public issue would constitute 30.09 percent of the post issue paid up capital of the company.
 
The rights Issue opened for subscription on August 06, 2007 and will close on September 05, 2007. The public issue opens for subscription on August 27, 2007 and will close on September 03, 2007.
 
The capital raised from the composite issue will be deployed for setting up a new plant to provide machining for castings at Aurangabad, to repay the unsecured loan raised by the Company for setting up a broach and gear cutting tool unit at Gandhidham, to meet the margin money for working capital requirement for Aurangabad Project and to meet the expenses of the issue.
 
The sole lead manager to the composite issue is Centrum Capital Limited and Intime Spectrum Registry Limited is the registrar to the issue.
 
Dagger Forst Tools, a part of the Yash Birla Group, is engaged in the manufacture of high precision Cutting Tools viz. Broaches, Hobs, Shaper Cutters & Shaving Cutters (Gear Cutting Tools).