ICICI Bank today informed the National Stock Exchange that it has acquired 12.65 per cent stake in Himachal Futuristic Communications (HFCL).
ICICI Bank converted part of its debt in the company into equity as the latter had defaulted on loan repayments. The stake which was acquired by the bank was in lieu of a loan of Rs 36 crore.
HFCL Board had in its board meeting on July 30, 2003 allotted 3.60 crore equity shares at Rs 10 each fully paid to ICICI Bank. The HFCL scrip closed on the Bombay Stock Exchange at Rs 28.10.
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In a release send to the NSE, ICICI Bank said that the mode of acquisition is through loan conversion.
HFCL had defaulted on payment of loan and the loan agreement stipulated condition for conversion into equity shares on default in payment of loan amount, the bank said.
The date of acquisition of shares was August 27, 2003. The loan conversion to ICICI bank was on par.
The total secured loans of HFCL as on March 31,2002 was at Rs 730 crore of which term loans to institutions and banks were at Rs 299 crore.
With this ICICI Bank would have the largest stake in the company. The promoter shareholding in HFCL has fallen to 5.41 per cent at the end of June 30,2003.
The promoter stake is being held by Vinsan Trade & Commerce Pvt Ltd (1.23 per cent) and HFCL Trade Invest Ltd (1.21 per cent). The promoter shareholding at the end of March 31,2003 was at 9.07 per cent.
Private corporate Bodies held 26.32 per cent, NRIs/OCBs 33.89 per cent while public shareholding was at 26.87 per cent.
HFCL was also looking at a business restructuring exercise and was looking at refocusing attention on business segments or its core competence