Exide promoters' stake to dip post float

The stake of Raheja Brothers in automotive and industrial battery major Exide Industries (EIL) will come down by 2.59% following the preferential issue of fresh equity shares to raise over Rs 57.82 crore.

Rahejas, through Chloride Eastern, currently hold 51.45% of the total capital of 7,12,20,676 equity shares of Rs 10 each in EIL. The company is planning to come out with a preferential issue of additional shares for foreign institutional investors operating in India as well as MFs.

According to information submitted by the company to seek approval of shareholders for the issue, Chloride Eastern's holding will come down to 48.87% of the increased capital of 7.50 crore equity shares of EIL after the issue.

The company is planning to issue 37,79,324 equity shares at a price of Rs 153 each to increase the liquidity of securities. It feels that a larger float would also benefit existing shareholdeers as it would provide an opportunity for greater trading in the company's shares on the stock exchanges and help maximise value of holding of the existing members.

The notice says that the company would allot all the new shares, which would make up 5.04% of the total equity share capital after the preferential issue, to Aranda Investments (Mauritius) PTE, .

The shares to be issued would have a lock-in period of one year from the date of issue, it said.

The company said the proceeds of the issue, which in this case is slightly over Rs 57.82 crore, would be used in meeting long term fund requirements.

An EGM will be held on January 6 in Kolkata to clear the preferential issue.