RPG Cables Ltd, the RPG fold company based in Mysore, plans to increase its authorised share capital from Rs 40 crore to Rs 50 crore in a move to augment its long term resources to meet its future requirements.
The company, which last year changed its name from RPG Telecom to RPG Cables, also proposes to approach financial and lending institutions for issue of preference shares. It plans to issue redeemable cumulative preference shares at par on private placement basis up to a maximum limit of Rs 25 crore.
Both these proposals will be placed as for approval by its shareholders at its coming annual general meeting on September 22 in Mysore.
At present, RPG Cables' Rs 40 crore of authorised share capital is divided into 2.5 crore equity shares of Rs 10 each and 15 lakh redeemable cumulative preference shares of Rs 100 each. Now the company wants to increase this to Rs 50 crore to be divided equally into equity shares and preference shares of Rs 25 crore, respectively.
The company's another resolution also seeks to enable it to buy-back its equity shares in view of proposed changes in the laws.
During the year 1997-98, RPG Communications Holding Ltd, ceased to be a subsidiary of the company.
During the year, the company's revenue was lower at Rs 417.94 crore as against Rs 470.12 crore in the previous year. However, H V Goenka, chairman, held in his report that its reserves stood at Rs 245.09 crore on a paid-up equity share capital of Rs 21.24 crore. The profit after tax of Rs 6.09 crore was less than half of Rs 14.35 crore achieved in previous year.
The company attributed the lower turnover to low demand off-take by Department of Telecom (DoT) and power sector customers. Over capacity and intense competition among cable manufacturers also resulted in underutilisation of capacity and lesser margin of profits, according to it.
