Maxwell to raise Rs 275 cr

Maxwell Industries Limited, the flagship company of VIP group, plans to raise around Rs 275 crore through an issue of securities, by public or private offering, in the form of bonds or equity shares.

In a press statement, L J Reddy, managing director, Maxwell Industries Ltd, said, "These resources, raised by the company, will be used to finance its expansion plans, which include doubling the present capacity of its spinning and processing mills, garmenting and marketing with distribution and retail models."

In addition, the board of directors of the company has approved the issue of bonus shares in the proportion of three bonus equity shares for every four existing equity shares of the company. The bonus shares will increase the company's capital from Rs 6.16 crore to Rs 10.78 crore

The existing one equity share of Rs 10 each will be split into five equity shares of Rs 2 each. The board has approved the issue of bonus shares in the proportion of three bonus equity shares for every four existing equity shares of the company.

The board of directors approved the acqisition of related sister concerns in order to integrate all activities under the flagship. Valuation was accepted for HyboHindustan at Rs 6.75 crore and Gomma Industries at Rs 17.81 crore.

In order to discharge the consideration for acquisition of these businesses, the board approved the issue of 24,35,000, five per cent cumulative preference shares of Rs 100 each, redeemable at the option of the company. The aggregate amount of preference shares is Rs 24.35 crore.