 "EMC to invest Rs 150 crore in McNally Bharat")
McNally Bharat Engineering announced that it has entered into an agreement with EMC Ltd and Williamson Magor Group (the existing promoters of McNally) to enable an additional equity investment of upto Rs 100 crore as primary equity capital into McNally. Earlier, MKN Investments, a group company of EMC, had made an equity investment of Rs 50 crore in March 2015 in McNally for holding 12.5% stake in the company.
This capital infusion of Rs 100 crore by the company will be done through a preferential allotment of 10 million shares to EMC Ltd at a price of Rs 100 per share. Following this fresh round of proposed preferential allotment, EMC group (along with MKN Investments) will hold 29.64% stake in McNally.
Existing promoter Kolkata-based Khaitan family's shareholding in Williamson Magor group's engineering arm is also set to come down from 29.73% above 25%. According to the investment agreement, McNally Bharat Engineering will be jointly controlled by the existing promoters and EMC Ltd. Two representatives of EMC, including managing director Manoj Toshniwal, will join the board.
“The partnership with EMC will strengthen McNally to capitalise on the large business opportunity for the company over the next 10 years and thus provide an integral engineering and construction solution to its customer in the chosen areas of competence,” said Aditrya Khaitan, chairman of McNally Bharat Engineering.
This capital infusion of Rs 100 crore by the company will be done through a preferential allotment of 10 million shares to EMC Ltd at a price of Rs 100 per share. Following this fresh round of proposed preferential allotment, EMC group (along with MKN Investments) will hold 29.64% stake in McNally.
Existing promoter Kolkata-based Khaitan family's shareholding in Williamson Magor group's engineering arm is also set to come down from 29.73% above 25%. According to the investment agreement, McNally Bharat Engineering will be jointly controlled by the existing promoters and EMC Ltd. Two representatives of EMC, including managing director Manoj Toshniwal, will join the board.
“The partnership with EMC will strengthen McNally to capitalise on the large business opportunity for the company over the next 10 years and thus provide an integral engineering and construction solution to its customer in the chosen areas of competence,” said Aditrya Khaitan, chairman of McNally Bharat Engineering.