Haldia Petrochemicals Ltd to float rights issue for capital infusion

KOLKATA: The board of the financially troubled Haldia Petrochemicals Limited (HPL) today approved issuance of rights shares to existing promoters for much- needed capital infusion into the company.

After the company's board meeting, Chairman and West Bengal Industry Minister Partha Chatterjee said: "The company will issue rights shares for immediate infusion of capital in HPL".

"Unless capital is immediately injected into the company, HPL is staring at an imminent closure," he told reporters here. He said the company would issue 52 crore shares at a price of Rs 25.10 per share aggregating Rs 1,300 crore.

Indian Oil quoted the price of Rs 25.10 per share for bidding WBIDC shares in HPL. Chatterjee said the HPL management had been asked to carry out the exercise as soon as possible.

"Once this money is raised, the company will be prevented from going to BIFR and also the HPL account from becoming an NPA," he said. All the lenders and Purnendu Chatterjee, founder chariman of TCG group, were present at the board meet. TCG group holds over 41 per cent stake in HPL.

Purnendu Chatterjee when asked to give his comment said that he had suggested some alternative methods to raise funds for the company.

"There is a need for an out-of-court settlement for the survival of the company as well as a comprehensive solution for problems of HPL", he said.