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Tuesday, Mar 30, 2004

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Balrampur Chini rights issue likely in early May

Kohinoor Mandal

Kolkata , March 29

BALRAMPUR Chini Mills' proposed Rs 59.19-crore rights issue is likely to hit the market some time in the beginning of May.

According to sources in the company, Balrampur Chini has already filed the application with the Securities and Exchange Board of India (SEBI).

"The SEBI generally takes three weeks to clear an application. Once we get the formal clearance, we will go ahead with the issue a few days later," the sources told Business Line.

Earlier this month the company's shareholders had approved the proposal of the rights issue at an EGM.

The ratio of the rights issue is 12 equity shares for every 100 equity shares held by the shareholders. The issue is to be managed by Enam Securities Ltd and Lodha Capital Markets Ltd.

The company is charging a premium of Rs 250 for every equity share of Rs 10. In the process it plans to mop up Rs 59.19 crore by issuing 22.76 lakh shares.

In December last year, the promoters of the company - the city-based Saraogis - offloaded 10 per cent of their stake in favour of institutional investors like DSP Merill Lynch, Reliance Mutual Fund, HSBC and India Capital Fund.

They sold 19 lakh shares for a consideration of Rs 50 crore, after which their stake dropped to 37 per cent. According to a company spokesperson, post-rights issue the promoters' stake will remain at the same level.

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