Kesoram Industries slips 2% as board okays preferential issue

NEW DELHI: Kesoram Industries closed lower by 1.96 per cent in Wednesday's trade after the company said it would raise Rs 180 crore through a preferential issue of equity shares to a promoter entity and issue optionally convertible preference shares to IndusInd Bank.

The stock fell 4.70 per cent to hit a low of Rs 77.90 on BSE. The scrip has lost nearly 46 per cent of its market value from its 52-week high of Rs 148.85 hit on April 13, 2015. The company, in a filing to BSE, said its board member have proposed to raise up to Rs 90 crore through equity issue to Manav Investment and Trading, a promoter entity.

It said it would issue optionally convertible preferential shares worth up to Rs 90 crore.

The company has been reporting losses for the past three quarters. In the December quarter, the net loss of the company stood at Rs 274 crore, which higher than Rs 245 crore reported in the year-ago quarter.