Mukand weighs options to raise Rs 165 cr

Mukand has decided to raise Rs 165 crore for refinancing its exposure to the Unit Trust of India. The company's board is weighing the option raising the requisite funds either through a rights issue or through a loan.

In a notice to the Bombay Stock Exchange, Mukand said, "The company's board has also appointed a committee to consider and recommend as to whether, in the best interest of the company, the funds should be raised by way of a loan or by way of an issue of rights shares to its equity shareholders or by a combination of a loan and issue of rights shares."

Mukand recently concluded a one-time settlement with its lenders to settle Rs 600 crore of its outstanding debt of Rs 1,200 crore.

A top company executive told Business Standard, "As and when the decision is taken by the board on the rights issue, the promoters would participate." The current promoter holding in the company is 44.03 per cent. Financial institutions hold 16.04 per cent, with the Life Insurance Corporation of India holding 10.57 per cent stake and public holding 28.04 per cent.

The company's scrip today opened at Rs 80.40 on the Bombay Stock Exchange and touched a high of Rs 82.45, before closing at Rs 79.75, an increase of 1 per cent over yesterday's close of Rs 78.95. The stock clocked volumes of 8.84 lakh shares on the Bombay stock Exchange and 13.15 lakh on the National Stock Exchange.