Financial Daily from THE HINDU group of publications
Friday, Feb 27, 2004
Financial Daily from THE HINDU group of publications Friday, Feb 27, 2004 |
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Corporate
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Rights Issue Electrolux Kelvinator rights issue gets SEBI nod Richa Mishra
New Delhi , Feb. 26 THE wait might just be over for the Indian arm of the Swedish white goods major, AB Electrolux, Electrolux Kelvinator Ltd (EKL), for the proposed rights issue. The company is said to have received the capital market regulator, the Securities and Exchange Board of India (SEBI) nod for the same, according to market sources. EKL on Thursday informed the BSE, about modification in record date to March 12, instead of February 24 as given earlier for the purpose of rights issue of equity shares of the company. It may be recalled that the company had earlier informed the BSE that its board, at its meeting held on September 17, 2002, had approved the reduction in the size of its rights issue to Rs 199.7 crore, subject to necessary approvals. The company's original proposal of Rs 249.7 crore had run into rough weather with the market regulator recommending rejection of the proposal. The original proposal envisaged the company coming out with a rights issue of 24,97,18,386 equity shares of Rs 10 each. The company had worked out alternative options for its proposed rights issue following SEBI's recommendation to reject its earlier proposal. The capital market regulator, whose views were sought by the Foreign Investment Promotion Board (FIPB), had recommended rejection of the proposal since it reckoned that the move could result in the delisting of the company from the bourses. The parent company, AB Electrolux, controls 75.96 per cent of the company's equity, while the Indian promoters hold 9.64 per cent with the balance — 14.40 per cent — being distributed among the public and the FIs. Electrolux Kelvinator had applied for a clearance for expanding its share capital through the rights issue to the existing shareholders, as this would help the company meet capital expenditure requirements and cover up operational losses.
More Stories on : Rights Issue | Regulatory Bodies & Rulings | Air-conditioners & Refrigerators
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