The Hindu Business Line : I D Mittal picks up 3% stake in Dollex

Mr I. D. Mittal, a senior sugar industry professional and the executive director of Bajaj Hindustan Ltd, is picking up around three per cent stake in Dollex Industries, which is expanding its capital base through a preferential issue of shares and warrants. Mr Mittal, who was earlier with Balrampur Chini as its Group General Manager, also holds 1.29 per cent in Bajaj Hind Sugar & Industries.

Mr Mittal is buying one lakh shares in his personal capacity at a price of Rs 111 per share of Rs 10 each. He is also taking two lakh warrants, price of which would be fixed later following the SEBI guidelines. The stock is currently trading at Rs 80 on the BSE. Though Mr Mittal is not joining Dollex board, his son, Mr Kumar Gaurav Mittal, has come on the company’s board of directors this month as an additional non-executive independent director.

Dollex is issuing a total 3.10 lakh shares and 25.65 lakh warrants. The warrants are being issued to six non-promoter individuals or entities, including Mr Mittal, and a promoter outfit.

Mr Anis Khan, CEO of Dollex, told Business Line that the proceeds of the issue would partly finance the company’s Rs 100-crore expansion plan for its second sugar unit in Maharashtra.

The debt-free company would also resort to borrowings for the project, Mr Khan said.

The current paid-up capital of Dollex is of Rs 7.12 crore. The company has also proposed to split the Rs 10 stock into Rs 5 each. The company has sought shareholders’ approval on the proposals of share and warrant issue as also stock split through a postal ballot.

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