The Hindu Business Line : Promoters offload 2.54 pc stake in McLeod Russel

Promoters of McLeod Russel India Ltd (MRIL), the B.M Khaitan Group, have offloaded 2.54 per cent of their stake to raise approximately Rs 25 crore and it would be utilised for reducing the company's debt burden.

Talking to Business Line, Mr Kamal Baheti, Director, said the stake was offloaded to the Singapore-based foreign fund, Capital International, at a price of Rs 100 per share. The deal was struck on Friday morning.

Around 2.5 million shares were sold. Out of it, 16.63 lakh shares were parked with MRIL as treasury stock and the rest - 8.37 lakh shares - were sold from Williamson Magor.

As on March 31, 2006, MRIL's outstanding debt position was Rs 475 crore.

The company has targeted to retire at least Rs 200 crore in the current financial year. Around Rs 50 crore would be generated from internal accruals and Rs 25 crore would come from this stake dilution activity.

"We hope to getRs 125 crore from the $30-million fresh equity issue that we announced on Thursday," he said.

MRIL has decided to raise $30 million either through ADR (American Depository Receipts), GDR (Global Depository Receipts) or from the domestic shareholders.

Debt or FCCBs (foreign currency convertible bonds) are totally ruled out.

At present, the Khaitans are holding 45 per cent stake in MRIL but it would increase to around 55 per cent once fresh shares are issued to the shareholders of Williamson Tea, which is being merged with the company.

However, with the Friday's offloading activity, their stake has dropped to around 52.5 per cent.

This stake would further fall by six-seven percentage points after the issuance of fresh shares for raising $30 million.

On Friday, the stock MRIL opened at Rs 100 on the BSE and reached a high of Rs 103.95 and closed at Rs 99.

More than 26 lakh shares were traded at the bourse.