The BPL Group's move to buy back the equity held by financial institutions in BPL Display Devices Ltd has come under a cloud with the institutions striking down the group's offer of Rs 60 a share.
At a recent joint meeting, financial institutions and banks arrived at the consensus that the BPL Group should improve its offer.
The buyback move is part of the Board for Industrial & Financial Reconstru-ction's rehabilitation package for BPL Display Devices Ltd, called Uptron Colour Picture Tubes Ltd until the BPL Group took over the management in April 1996.
Of the Rs 42.5 crore equity of BPL Display Devices Ltd, Industrial Development Bank of India holds 15.53 per cent (65,96,400 shares), ICICI 6.76 per cent (28,70,700 shares), Industrial Finance Corporation of India 4.56 per cent (19,36,100 shares), Unit Trust of India 2.50 per cent (10,60,700 shares) and Nationalised banks 2.76 per cent (11,70,900 shares).
Of the remaining equity, 42.01 per cent is with the new promoters while the public holding is 9.93 per cent.
The joint meeting of banks and financial institutions has noted that, technically, the total over dues of BPL Display Devices Ltd would be Rs 25.61 crore.
Under the BIFR rehabilitation and relief package, it was observed at the meeting, BPL Display Devices Ltd is required to pay interest on debentures with effect from 1997-98.
There are interest and principal over dues to the extent of Rs 11.36 crore as on May 31, 1999.
Besides, BPL Display Devices Ltd is yet to issue zero interest coupon bonds to be converted into equity at 10 per cent discount to the market price on March 31, 1999.
The BPL Group, in spite of giving several assurances to Business Standard, has not yet responded to a questionnaire sent over a week ago.
The BPL Group had taken over the management of Uptron Colour Picture Tubes Ltd from the old promoter, Uttar Pradesh State Electricity Board, in April 1996 in accordance with a rehabilitation scheme sanctioned by BIFR for the company after having declared it sick under the Sick Industrial Companies Act.
Uptron Colour Picture Tubes Ltd, since renamed as BPL Display Devices Ltd, is engaged in the manufacture of colour picture tubes in Ghaziabad.
After having taken over the company, BPL Ltd had approached BIFR seeking modifications in the scheme sanctioned by it.
It asked for conversion of its second tranche of unsecured loans into equity at par, as its shareholding was going below 51 per cent due to conversion of the dues of institutions and banks into equity.
