The Rs 207.06-crore company now plans a 1:1 rights issue at a premium of Rs 40, to garner Rs 50 crore.
The company will also make a private placement of preference shares/non-convertible debentures with financial institutions, mutual funds and other corporates to mop up Rs 100 crore.
The company has revised its means to raise finance as it has proposed to spin off the infrastructure project at Navlakhi in the Gulf of Kutch into a separate company. The rights issue as well as private placement will be used to subscribe to the equity of this proposed new company.
Company sources said the restructuring has been done with a view to offer equity to domestic and international oil and gas majors so as to participate in the infrastructure projects.
On September 7, 1995, DMCC shareholders had approved of a rights and private placement of preference shares to meet the cost of LPG project and finance other capital expenditure.
The company now has sought approval from shareholders for the revised means of finance as well as to establish a separate company for the infrastructure project with DMCC as the main promoter and one or two other parties as co-promoters.
DMCC's original plan was to engage in the business of import and distribution of LPG as well as other petroleum products.
The revised project estimated over Rs 200 crore now proposes infrastructural project to set up a jetty at Navlakhi, an independent import terminal for import of petroleum products and LPG from ocean going tankers, construction of a Trestle bridge with pipelines to receive petroleum products and LPG in refrigerated condition and transportation of the same to various destinations.
