Ahmedabad SE proposes rights issue

Ahmedabad Stock Exchange will raise its issued share capital 10 times through a rights issue subject to the approval of its members at the extraordinary general board meeting (EGM) to be held tomorrow.

According to the sources the stock exchange aiming at listing itself on the BSE, will issue shares through a rights issue at a ratio of 1:10, subject to the approval of the shareholders at the EGM schedule to be held on tomorrow.

The stock exchange will issue 289 lakh shares. Presently, the issued share capital is Rs 28.90 lakh and the authorised capital is Rs 35 lakh. The face value of the share will be Rs 1.

According to the source, the entire exercise of increasing the issued capital is aimed at the disinvestment process. "We have met the equity investors and will try to divest our 51 per cent stake," adds the source.

Once the size of the issued capital is raised, the exchange will hand over the job of valuation to a leading professional services organisations in India offering a range of consulting services. The final decision regarding appointing a valuer for the valuation job will be taken up in the board meeting that is scheduled on April 17.

After completion of EGM, within the next seven days the audit is expected to be completed and valuation work will be carried out after the completion of the audit. "Valuation work will be over in five to six weeks," adds the source.

The merchant bankers might also be called up in the board meeting to be held on April 17 to discuss ways of disinvestment as per the rules laid down by the Stock Exchange Board of India (SEBI). "We will keep our option open till then," adds the source. However, sources informed, "The ultimate goal is to get listed." The exchange expectS to complete the disinvestment process by September 2007.