• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Kolkata, Sept. 18 Gujarat NRE Coke’s sudden modification on Wednesday in its earlier proposed ratio for the rights issue of the shares with differential voting rights (DVR) did not go down well with the market. The stock dropped on Thursday by more than 8 per cent with 40.48 lakh shares changing hands, against the fortnightly average of 21.38 lakh shares on the Bombay Stock Exchange.

On September 10, the company had informed the exchanges that the ratio for such proposed rights would be 1:300 and the board of the company would consider the issue on September 17, the day of its annual general meeting.

At the AGM, the company reportedly informed shareholders that the rights issue with differential voting rights were being issued to promoters to raise their stake to 51 per cent from 41 per cent.

The purpose of the issue was to ward off hostile takeover attempts and to raise Rs 120 crore to part-finance proposed power plants. The shareholders, according a resolution, approved the issue of bonus shares at a ratio of 1:5.

On September 17, the board fixed the rights issue ratio at 1:450 instead of 1:300.

Gujarat NRE Coke, in a clarification issued on Thursday, said: “Earlier the company had announced the ratio at 1:300 without considering the bonus issue, which would lead to increase in the paid up capital.

As such the ratio of rights issue has been modified to maintain the quantum of rights issue at the same level as proposed. The voting rights attached to such DVR shares would be decided after obtaining requisite approvals from the shareholders.”

The price of such rights shares is proposed to be Rs 1,000 each. The Board of Directors at the AGM had also fixed October 20 as record date for entitlement of bonus issue.

More Stories on : Rights Issue | Coke & Metalurgical Coke

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line