The financial institution's stake in the Chennai-based pharma company will go up to 36.56 per cent from the existing 3.56 per cent, after the proposed preferential issue of 2.13 lakh equity shares of Rs 10 each.
Consequently, the combined shareholding of JKI Associates and Tamilnadu Industrial Development Corporation, the promoters of the company, will come down to a shade over 30 per cent and 25 per cent, respectively.
However, since the promoters will jointly have a marginally greater stake than UTI, technically there will not be any change in the company's management. UTI will also subscribe 1.77 lakh redeemable preference shares of Rs 1,200 each amounting to Rs 21.31 crore.
Sources said the sharp decline in the international prices of Penicillin-G, the main money spinner to the company, together with steep increase in furnace oil prices, adversely affected its sales and bottomline as well.
The financial institution, which holds secured non-convertible debentures (NCDs), has agreed to convert a portion of the NCDs and reduce the face value of them.
In order to enable the company to issue equity and preference shares, the company will increase its authorised capital from Rs 65 crore to Rs 101 crore.
During the first quarter ended June 2000, the company's net loss went up to Rs 6 crore from the previous corresponding period's Rs 3.71 crore. Sales stood at Rs 19.60 crore (Rs 20.80 crore).
In the last financial year, the company recorded a sales of Rs 79.50 crore and a net loss of Rs 19.89 crore.
