Mukand has announced a rights issue of equity shares in the ratio of 9 shares for every 4 shares held. The company is planning to raise Rs 50.64 crore through the issue. The promoters have already brought in Rs 36.3 crore as an advance against the rights issues. |
Rajesh Shah, managing director, told Business Standard, "The promoters have committed to pick up any unsubscribed portion of the rights issue and have brought in Rs 36 crore as an advance." |
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The shares, which have a face value of Rs 10, closed on the Bombay Stock Exchange at Rs 16.7 a share yesterday. |
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The promoters' holding in the company, which at present is around 33 per cent, is also likely to go up, if the issue is not fully subscribed to, Shah added. |
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The rights issue is part of the company's Rs 1,300 crore corporate debt restructuring. The board had also approved the write off of 20 per cent of its equity share capital, amounting to Rs 5.62 crore. |
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As per the recommendations, the promoters have to infuse fresh equity worth Rs 51 crore. |
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The CDR package also included the sale of the company's foundry at Kurla. |
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In lieu of cancellation, the company will allot 5.6 crore redeemable preference shares with a coupon rate of 0.01 per cent. However, the issue of the preference shares is subject to the approval of the Corporate Debt Restructuring cell set up by Reserve Bank of India. |
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