The promoter group of Southern Petrochemical Industries Corporation (Spic) is planning to infuse around Rs 50 crore to raise its stake to 40.22 per cent.
A notice to the company’s shareholders on the eve of the extraordinary general meeting said Ficon Holdings Ltd, Mauritius, an existing shareholder and a constituent of the promoter, would pump in Rs 50 crore into Spic.
“To augment the finances of the company for resuming its operations, the promoters of the company, at the request of Asset Reconstruction Company (India) Ltd (Arcil), have agreed to infuse Rs 50 crore against security to be issued, which would progressively be converted into equity shares of the company,” it said
The promoter group, MA Chidambaran, currently holds 31.05 per cent.The group’s shareholding will be 26.90 per cent after the conversion of Arcil’s debt of Rs 30 crore to equity shares and 40.22 per cent after all the fully and compulsorily convertible preference shares are converted into equity shares.
As on January 23, 2010, Ficon’s shareholding was at 14.73 per cent and post preferential issue it will increase to 28.66 per cent. Arcil’s will hold 13.37 per cent after the conversion of the debt into equity shares and 10.94 per cent after the fully and compulsorily convertible preference shares are converted into equity shares. The share of Tamil Nadu Industrial Development Corporation, a promoter, would come down to 5.80 per cent from the current 8.19 per cent post preferential issue.
The proposed infusion and the debt-equity swap of Arcil are the latest in the series of events to revive the beleaguered fertiliser company, which owes around Rs 2,845 crore to its creditors. Recently, Indian Oil Corporation (IOC) said it was keen to resume supply of naphtha to Spic, which owes about Rs 370 crore to IOC. The company hopes to recover its dues once the fertiliser unit at Tuticorin resumes operations. Fertiliser minister MK Azhagiri too had reportedly shown interest in getting the Tuticorin plant, which is close to his stronghold territory of Madurai, back on track.
For the year ended March 31, 2009, the company reported a net loss of Rs 707 crore, on a net sales of Rs 377.79 crore, when compared with Rs 567 crore and Rs 1,477.50 crore respectively in 2006-08 (18 months).