The Hindu Business Line : Texmaco to raise funds through equity, debt

The committee, with the help of the advisor, would soon finalise the route and the suitable instrument to maximize the premium and allow least possible dilution

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Kolkata, June 22 The Rs 807-crore Texmaco plans to raise funds through equity and debt to finance its proposed heavy engineering projects.

Mr A.K. Vijay, Senior Vice-President of the company, told Business Line that the company has appointed ICICI Securities as the advisor for a fresh equity issue. The proposal for borrowings would be taken up at a later stage, he added.

The company board on Monday decided to issue equity shares of up to Rs 200 crore and formed a five-member committee of directors, led by the company’s Chairman, Mr S.K. Poddar, to “manage” issues related to the fund raising.

The committee, with the help of the advisor, would soon finalise the route and the suitable instrument to maximise the premium and allow least possible dilution, Mr Vijay explained. Meanwhile, shareholders’ approval at the AGM on July 23, on the equity issue, has been sought through a special resolution.

Company standing

The company’s current paid-up capital is Rs 11.08 crore and the promoter’s holding 54.61 per cent. A clutch of local mutual funds are among the top stakeholders in the public category of Texmaco.

The board had in 2008 constituted a committee of directors to examine a ‘scheme of re-organisation’ for transferring the core engineering business to a subsidiary company to focus on accelerated growth and diversification, enhance shareholders’ value and raise financial resources to take advantage of the emerging business opportunities in infrastructure sector.

Mr Vijay said the restructuring part of the broad plan, however, has been shelved for the time being and would be taken up later.

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