Texmaco lines up rights issue

 A Texmaco official said the board would meet towards the end of this week to finalise the size and pricing of the issue.

 Lyons Range sources indicated that the issue would be priced at a premium of Rs 20 and one rights share would be offered to shareholders for every one held. The market grapevine has it that the issue would be fully underwritten by the promoters.

 Sources said the size of the issue would likely to be in the range of Rs 15.5 crore. Company officials, however, declined to comment.

 Texmaco, which has been undergoing an image makeover to establish itself as an engineering firm rather than a wagon-making enterprise, would use the rights proceeds to fund its expansion programme.

 The company has recently signed a construction agreement for a plot in Mumbai with the Rahejas which would fetch Rs 21.5 crore. The promoters has a 54.26 per cent stake in the company.

 Recently, Shyam Sundar Dalmia, a big-ticket broker, picked up a 10 per cent stake. The company