The Hindu Business Line : Sical to raise funds for iron ore terminal

SOUTH India Corporation (Agencies) Ltd (Sical) will go in for a combination of measures - a rights issue, a preferential allotment of equity shares and a preferential allotment of optionally convertible redeemable preference shares - to raise funds.

The funds are to be used to retire a part of its debt and to fund equity in a special purpose vehicle that it intends to create to implement an iron ore terminal project at Ennore port.

According to a communication to the stock exchanges, Sical will issue rights shares aggregating up to Rs 175 crore along with detachable warrants aggregating up to Rs 75 crore to the existing shareholders.

It will also issue equity shares on preferential basis aggregating up to Rs 95 crore to select group of investors - HDFC Ltd, ICICI Bank Ltd, Lloyd George Investment Management (Bermuda) Ltd and Pinnacle Trades and Investments Ltd.

Company sources had earlier said that it would issue preference shares to HDFC and ICICI Bank in lieu of the loans they had given to the company.

Besides, Sical plans to issue optionally convertible redeemable cumulative preference shares with an option to convert in case of default in redemption of shares at maturity totalling Rs 106 crore along with detachable warrants convertible into equity shares aggregating Rs 40 crore to MIE Pte Ltd.

These decisions were taken by an internal committee of the company at its meeting today.

The committee also proposed to change the name of the company to Sical Logistics Ltd, as it plans to hive off subsidiaries and become a pure play logistics company.

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