Promoters to hike AB Nuvo stake
Aditya Birla Nuvo will raise Rs 4,200 crore through preferential allotment of warrants to the Kumar Mangalam family in the next 18 months.
By TNN |
MUMBAI: Aditya Birla Nuvo will raise Rs 4,200 crore through preferential allotment of warrants to the Kumar Mangalam family in the next 18 months. After conversion of preferential warrants into shares, the promoter’s stake in the company will increase to 50.04% from 39.07%.
The institutional share holding will come down to 30.39% from 37.07%. The Aditya Birla Nuvo board on Wednesday decided to issue 2.05 crore warrants of face value of Rs 10 to promoter or promoter group on preferential allotment basis. The warrant holder could obtain one equity share against each warrant.
For obtaining the shareholders’ approval for the preferential issue, the extraordinary general meeting of the company will be held on February 6, 2008.
Aditya Birla Nuvo needs to raise funds to meet its capital expenditure in the growing businesses. To enhance its long-term financial resources and thereby strengthening the financial structure, the company has been exploring various options for raising funds, said the company in a statement. Sources say the chairman of the group Kumar Mangalam Birla is expected to personally invest Rs 4,200 crore for buying the warrants.
The institutional share holding will come down to 30.39% from 37.07%. The Aditya Birla Nuvo board on Wednesday decided to issue 2.05 crore warrants of face value of Rs 10 to promoter or promoter group on preferential allotment basis. The warrant holder could obtain one equity share against each warrant.
For obtaining the shareholders’ approval for the preferential issue, the extraordinary general meeting of the company will be held on February 6, 2008.
Aditya Birla Nuvo needs to raise funds to meet its capital expenditure in the growing businesses. To enhance its long-term financial resources and thereby strengthening the financial structure, the company has been exploring various options for raising funds, said the company in a statement. Sources say the chairman of the group Kumar Mangalam Birla is expected to personally invest Rs 4,200 crore for buying the warrants.
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