Vee Kay Fibres Ltd.

YEAR                       EVENTS
 1989 - The company was incorporated as a public limited company on
 7th
        June, at Jalandhar and obtained the Certificate of
 Commencement
        of Business on 13th June.  It was promoted in the joint sector
 by 
        by Vee Kay Oils Ltd., in association with the Punjab State
        Industrial Development Corporation Ltd. (PSIDC).
 
      - The main objective of the company is to manufacture worsted
 yarns 
        of 100% wool, acrylic blends with polyester novelty and fancy
        yarns of different counts for knitting and weaving.
 
      - The company set up a worsted spinning mill with a complement
 of 
        4,800 spindles for the manufacture of worsted yarns at
 village
        Akbarpur in the Ahmedgarh Tehsil of Sangrur district in
 Punjab. 
        Main plant and machinery were imported from France, West
 Germany,
        U.K., and Italy.  Two DG sets of 250 KVA capacity each were
        installed as a standby arrangement.
 
 1991 - 350 shares subscribed for by the signatories to the Memorandum
 
        and signatories to the Memorandum and Articles of
 Associations. 
 
      - 61,39,650 No. of equity shares of Rs. 10 each then issued for
        cash at par of which 33,39,650 shares reserved for allotment
 as
        under:
 
      - (i) 17,05,000 shares to PSIDC and Mutual Funds and
 
      - (ii) 16,34,650 shares to Indian resident directors, their
 friends 
        and relations, etc.
 
      - Out of the balance 28,000 shares, 7,32,000 shares reserved for
 
        preferential allotment as follows:
 
      - (i) 3,07,000 shares to employees/workers of the company as
 also 
        those of promoter companies (only 38,500 shares taken up) and
 
      - (ii) 2,00,000 shares to SBI Capital Markets Ltd.,
 
      - 1,00,00 shares to Canbank Mutual Fund and 1,25,000 shares to 
        Indian Bank Mutual Fund (All were taken up).  The remaining
        20,68,000 shares alongwith 2,68,500 shares not taken up by
        employees were offered for public subscription during March. 
        Additional 4,20,000 shares allotted to retain
 oversubscription.
 
 1992 - The company launched expansion plan of doubling the production
 
        capacity from 4,800 spindles to 9,600 spindles of which 1,600
        spindles are put into commercial production and the rest are
        awaited.
 
 1995 - On 21st January, the Company offered 65,60,000 No. of equity 
        shares of Rs. 10 each for cash at a premium of Rs. 12 per
 share
        to the existing members of the Company on rights basis in
 prop.
        1:1 (only 59,13,496 No. of equity shares were taken up).  The
        remaining 6,46,500 shares devolved on underwriters.  Another
        1,04,600 No. of equity shares of Rs. 10 each at a premium of
 Rs.
        12 per share were offered to employees (none were taken up). 
 The
        unsubscribed portion was allowed to lapse.