The Hindu Business Line : Exide Industries mulls pvt placement

EXIDE Industries is planning a private placement of 37,79,324 fresh equity shares to foreign institutional investors or mutual funds. The issue, if fully subscribed, will bring down the promoters holding in the company from the existing 51.46 per cent to 48.86 per cent.

The stake of institutional investors, on the other hand, will rise from 28 per cent to 31.62 per cent. The FII holding, currently ruling at 1.89 per cent, is expected to increase sharply.

Currently selling between Rs 150 and Rs 160 per share, Exide quoted a low of Rs 97.60 during the last 52 weeks.

In a notice issued to the stock exchanges on Thursday, Exide Industries said that the board of directors of the company had recommended issue of 37,79,324 fresh equity shares of Rs 10 each to FIIs and (or) mutual funds on a private placement basis, subject to shareholders approval.

The issue will increase the paid-up capital from the existing Rs 71,22,06,760 to the level of authorised capital of Rs 75 crore.

Mr Barun Das, Company Secretary and Head of Legal Affairs, told Business Line that the company was planning to seek the shareholders' approval through an extraordinary general meeting sometime in December.

While the company officials did not give any clue to the end use of the issue proceeds, according to sources the issue will finance the company's ongoing expansion and consolidation plans including the plan for setting up a lead smelter in Central India in joint venture. Though far from being finalised, the smelter would cost Rs 60120 crore depending upon the size.

Exide is already pursuing expansion plans at its Haldia facility primarily to cater the export market for industrial batteries.