The Hindu Business Line : Kopran seeks shareholders nod for pref allotment

Kolkata May 30 Kopran Ltd is seeking shareholders' nod for issuance and preferential allotment of around 12 lakh shares to UTI Bank. The exercise is part of the financial restructuring, which entails conversion of debt into equity.

The proposed allotment would increase the non-promoter holding in the company. The current non-promoter holding in the loss-making pharmaceutical company is more than 70 per cent in a paid-up equity base of Rs 32.25 crore.

Incidentally, the company had allotted 2.26 lakh shares to SBI and 4.49 lakh shares to Industrial Development Bank of India Ltd (IDBI) at a price of Rs 44.83 per share of Rs 10 each in September 2006 as part of the restructuring.

As on March 31, 2007, three major non-promoters - Clearwater Capital Partners Cyprus Ltd (14.64 per cent), IDBI (2.94 per cent) and HDFC Trustee Co (2.83) - held 20.41 per cent. In contrast, some 50 promoter entities - individuals and corporate bodies - held 29.28 per cent.

The promoters' holding had come down substantially during the period between April 1, 2006 and March 31, 2007 - from 34.57 per cent to 29.28 per cent even as the paid-up capital increased. The paid-up capital at the end of March 31, 2006 was Rs 26.85 crore.

The EGM for discussing the preferential allotment has been scheduled for June 19, 2007, the company informed the BSE today. The audited result for the financial year to March 31, 2007 is expected by the end of next month. The net losses in the first three quarters of 2006-07 stood at Rs 49 lakh.

The Kopran stock closed a shade down at Rs 27.10 against the previous day's close of Rs 27.45 on the BSE.

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