Haldia Petrochemicals Ltd (HPL) is likely to emerge as a board-managed company with no clear management control with any shareholder group after the ongoing debt and equity restructuring is over by February 2003.
At present, The Chatterjee Group (TCG) and government of West Bengal (GoWB) hold 43 per cent each while the rest is with Tata Group. The state government had earlier agreed to hand over management control to TCG. Under that arrangement, TCG would have management control with 51 per cent stake and Tatas would have exited completely from the Rs 6,000 crore project.
Under the new circumstances, HPL would be a widely held company. According to the restructuring plan proposed by its promoters, the total share capital will increase by Rs 1,100 crore, from Rs 1,153 crore as of now to Rs 2,253 crore. Out of it, preference shares would be worth Rs 450 crore.
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The stake of TCG and GoWB would then get diluted to 29.95 per cent each, while the rest would held by several entities. GAIL India would hold 10 per cent, banks and financial institutions another 14 per cent and possibly another partner the balance 10 per cent. Tata Sons is also likely to continue with a diluted 8.87 per cent stake in HPL.
HPL has strengthened the board by inducting two new independent directors, Naresh Chandra and Jamshyd Godrej. One or two more new directors are expected to join soon.
The company plans to go for an initial public offering in the future. The presence of such eminent personalities on the board would improve HPL