The Securities and Exchange Board of India (Sebi) has asked white goods firm Amtrex Hitachi Appliances Ltd (AHA) to put on hold its proposed rights issue. A 100 per cent subsidiary of air-conditioner giant Hitachi, Japan, AHA was planning to come up with the rights issue during this month. The Rs 239 crore AHA now will have to wait till the clearance from Sebi for the rights issue. The offer, which was filed with the Sebi by AHA during the first week of March, has received a one-line response from Sebi disapproving its proposal to go for a Rs 27.3 crore rights issue on March 28.
Following the development, AHA has once again referred the matter to Sebi. Sources said Sebi is yet to get back to AHA.
The rights issue was planned immediately after the acquisition of AHA by Hitachi Home and Life Solutions which had taken over the entire 19.4 per cent stake of the Lalbhai Group in AHA to become the majority shareholder in the company.
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Following the acquisition, to augment the financial resources of the company for its on-going business needs, the AHA board approved the issue of rights shares.
The 3:5 issue, at a price of Rs 31 per equity share of Rs 10 paid-up value, was approved at the company