Financial Daily from THE HINDU group of publications
Friday, May 27, 2005
Financial Daily from THE HINDU group of publications Friday, May 27, 2005 |
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Markets
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Preferential Allotments Citigroup arm picks 14.69% stake in Lakshmi Overseas Our Bureau
Mumbai , May 26 THE private equity arm of Citigroup is acquiring 14.69 per cent equity stake in the Punjab-based Lakshmi Overseas Industries Ltd (LOIL) at a price of Rs 304 a share aggregating to Rs 57.76 crore. Lakshmi Overseas, one of the largest integrated rice milling company, today informed the stock exchange that its board has approved the preference allotment of up to 19 lakh equity shares of Rs 10 each to Citigroup Venture Capital International Growth Partnership Mauritius Ltd at Rs 304 a share (nearly 10 per cent discount to the market price). LOIL Continental Foods Ltd, an entity owned by the promoters' group, is picking up around five per cent stake in the company for Rs 16.42 crore. The board has approved to offer and issue up to 6.4 lakh equity shares of Rs 10 each to LOIL Continental Foods Ltd at Rs 304 a share "With this preferential allotment, the company will generate new funds of Rs 78 crore which will be used for its power plant. The company has already announced its Rs 150-crore expansion plan," Mr B. S. Uppal, Chairman and Managing Director, also the promoter of the company told Business Line. Post-preferential issue, the promoters' shareholding would be nearly 46 per cent. "The company has plans to increase its rice processing capacity by 1,000 tonnes per day to 3,100 tonnes per day at its plant at Khamano near Chandigarh by September. The company has also plan to set up a Rs 90-crore power plant of 24 MW in two phases spread over 2005-06 and 2006-07 of 12 MW each," he said. The board also approved the execution of a non-binding Letter of Interest with the Citigroup arm. Further, the company has informed that for the purpose of the allotment proposed above, Citigroup Venture Capital International Growth Partnership Mauritius Ltd would be acting independently and is not in concert with any other person. An extra ordinary general meeting will be held on June 20, consider and approve the preferential allotment.
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