The country’s largest automotive jobbing foundry maker, Hinduja Foundries Limited, a subsidiary of the Hinduja group, has decided to withdraw its proposed Rs 124.98-crore rights issue.
When contacted, B Swaminathan, managing director (executive), Hinduja Foundries, declined to comment.
Meanwhile, in a filing to the Bombay Stock Exchange, the company said that its board of directors, at its meeting held on May 15, 2012, had given its nod for the withdrawal of the proposed rights issue.
The company was planning to issue of 16.6 million equity shares of Rs 10 each for cash at a price of Rs 75 per share (including a premium of Rs 65) aggregating to Rs 124.98 crore on a rights basis in the ratio of 29:50.
“Due to the current volatile market conditions vis-a-vis the current market price of the company’s shares quoted at the bourses, and in the opinion of the board, the options are very limited to ensure complete subscription of the issue,” the company said.
Hinduja Foundries’ stock ended the trade at Rs 51.00 on the BSE on Thursday, up 3.34 per cent over the previous close of Rs 49.35.
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Earlier, the company has said that it was planning to raise the money to support its proposed investment of Rs 70 crore in its new facility in Sriperumbudur and to modernise its Ennore facility during the current financial year.
The company further stated that its board had given its approval to issue of redeemable, non-convertible, cumulative preference shares “of Rs 100 each of an aggregate nominal amount not exceeding Rs 300 crore in the aggregate out of the authorised capital of the company to the promoters of the company, subject to necessary provisions and approvals.”
The company is planning to convene an extraordinary general meeting on July 4, 2012 at Chennai in this regard.