Financial Daily from THE HINDU group of publications
Wednesday, Apr 10, 2002
Financial Daily from THE HINDU group of publications Wednesday, Apr 10, 2002 |
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Buyback Corporate - Buyback Sterlite awaits HC nod for buyback Our Bureau
MUMBAI, April 9 STERLITE Industries (India) Ltd's (SIIL) scheme of arrangement to purchase its equity shares from shareholders is slated to come up for hearing on April 11, in the Bombay High Court. Having secured shareholders' nod for the proposal, the company is now seeking approval from the High Court. In December 2001, the company had announced plans to purchase its equity shares under Section 391-394 of the Companies Act and later cancel them as mandated by the Act. The scheme of arrangement envisages purchase of up to 50 per cent of the company's paid-up capital (279,96,278 equity shares of face value Rs 5 each) at Rs 150 per share. The price will be offered in two parts — Rs 100 in cash and the balance Rs 50 by allotment of five 10 per cent secured non-convertible debentures redeemable 35 per cent in the fourth year, 35 per cent in the fifth year and 30 per cent in the sixth year. The shares once purchased will be cancelled as required by the Companies Act. Sterlite's equity base is Rs 27.78 crore comprising 559,92,555 shares of Rs 5 each. Currently, the promoters hold 43 per cent stake. About 10-12 per cent is with FI and FIIs and the balance with the public. In the event the public holding comes down to less than 10 per cent, the company will take steps to delist its equity shares from domestic bourses. The total cash outflow for SIIL on the scheme would be Rs 278 crore, the cash component being met by the company's internal accruals. SIIL had said it was reducing its existing capital to achieve a desired capital structure. "The company has been advised that access to international capital markets for equity funds would be possible only if it is appropriately capitalised,'' its application said. SIIL also said it may go in for an issue of fresh shares in the international market. The company's scrip closed today at Rs 133.30 on the Bombay Stock Exchange (BSE), up from the previous close of Rs 131.50.
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