Financial Daily from THE HINDU group of publications
Friday, Jan 27, 2006
Financial Daily from THE HINDU group of publications Friday, Jan 27, 2006 |
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Corporate
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Preferential Allotments Gangotri Tex promoters to raise stake thru preferential offer R.Y. Narayanan
Coimbatore , Jan. 26 THE promoter-group of Gangotri Textiles Ltd (GTL) of Coimbatore is seeking to allot to itself 16 lakh convertible share warrants through a preferential offer, valued at Rs 8 crore, to increase its equity stake in the company. This will also meet the condition stipulated by lending institutions part-financing the expansion plans of the company that the promoters should bring in fresh equity capital. Each warrant would entitle allotment of one equity share (Rs 5 face value) at a premium of Rs 45 each and the equity shares would be allotted to the share warrant holders within a period of 18 months from the date of issue. In an explanatory statement in the notice calling for an extraordinary general meeting of the shareholders, Mr Manoj Kumar Tibrewal, Managing Director, GTL, stated that the equity capital of the company at present is Rs 9.60 crore. The promoters earlier held around 69 per cent of the equity. Recently, one of the promoters, Mr Ramesh Kumar Tibrewal, ceased to be a promoter and relinquished the management and control of the company and disposed off a portion of his holding in the company. The promoter's stake has now come down to 38.89 per cent. The statement said the company is embarking upon a major expansion programme and is availing itself of loan facilities to the extent of about Rs 273 crore. (The expansion plan is expected to cost about Rs 350 crore.) One of the conditions for the project/loan sanction was that the promoters should bring in by way of equity capital Rs 8 crore which the promoters have accepted. As the project is implemented in two phases, this contribution also has been planned accordingly and the share warrants being offered on a preferential basis are convertible into equity shares in 18 months as per the SEBI guidelines. The face value of the share warrant is Rs 50 each. While 10 per cent of it is payable on allotment, the balance is payable within a maximum period of 18 months and on receipt of the balance payment, the shares due on conversion would be allotted. Each share warrant will be converted into one equity share of Rs 5 each at a premium of Rs 45 per share. The entire pre-preferential allotment shareholding of the allottees will be `locked in' from January 15 up to a period of six months from the date of allotment of share warrants. The object of the preferential issue was to strengthen the capital base of the company and to `facilitate faster implementation' of the projects envisaged and to increase the stake of the promoter group, the EGM notice said. Currently, the promoter group - Mr Manoj Kumar Tibrewal, Managing Director, GTL, and his family members — hold 74,66,787 shares constituting 38.89 per cent of the equity capital of the company. Post-conversion of the share warrants, their holding would increase to 90,66,787 shares constituting 46.58 per cent of equity. As GTL is planning to come out with a public issue, the post conversion shareholding of the promoters might differ after the issue. The preferential share warrant allotment would be completed within a period of 15 days from the date of passing of the special resolution by the shareholders and no change in the management control is contemplated due to the issue, the notice said. It has also been proposed to appoint Mr Mohanlal Tibrewal as Executive Director of the company. The EGM would be held on February 15 in Coimbatore to consider the two proposals.
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