Business Daily from THE HINDU group of publications
Thursday, Jan 10, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Thursday, Jan 10, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Preferential Allotments Aditya Birla Nuvo to raise Rs 4,200 cr
“We will utilise the funds for expansion in insurance and financial services, along with our BPO and garment retailing businesses.” Our Bureau Mumbai, Jan. 9 Aditya Birla Nuvo’s board today approved a proposal to issue 2.05 crore shares through preferential warrants to its promoters. Mr Adesh Gupta, Chief Financial Officer, indicated that it would be at a little over Rs 2,000. The promoters will need to put upfront, 10 per cent of the purchase consideration or approximately Rs 425 crore for the allotment. The exact price would be determined based on the market price relevant in mid-February when the issue is considered by the shareholders, he explained. The diversified group with interests, among other things, in telecom, financial services, BPO and textiles, intends to raise Rs 4,200 crore in the next 18 months to expand its business, primarily in insurance and financial services divisions. The company had earlier announced a capital expenditure of around Rs 400 crore for insurance, Rs 120 crore for BPO and Rs 110 crore for apparel retail. The latest decision thus marks a steep scaling up of their investment plans. “Our financial services division has been doing well of late. We will utilise the funds for expansion in insurance and financial services, along with our BPO and garment retailing businesses,” said Mr Gupta. Currently, the company has six to seven lakh square footage of retail space, which they expect to double in the next three years, added Mr Gupta. The insurance division of the group – Birla Sun Life Insurance grew to 6.5 per cent in the second quarter of financial year 2008 from 5.3 per cent in fiscal 2007, according to an ENAM Securities Ltd report. The insurance company is in an investment phase with 171 branches and 12,000 direct selling agents added in the first half of 2008, the report said. The company has called for an extraordinary general meeting on February 6 for obtaining the approval of the shareholders to the said preferential issue. The company’s scrip on Wednesday closed at Rs 2,314.30 up 8.56 per cent from the previous day’s close of Rs 2,131.75. Promoters to hike stake in Aditya Birla Nuvo More Stories on : Preferential Allotments | Diversified
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