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SKF Bearings to raise Rs 88-cr via rights issue

Our Bureau

MUMBAI, July 12

SKF Bearings India Ltd today announced that it will shortly be floating a rights issue to raise around Rs 88 crore.

According to a company release, the rights issue will comprise two parts, an issue of equity shares and an issue of non-convertible debentures (NCDs) with detachable warrants.

Equity shares aggregating to Rs 50 crore and NCD with detachable warrants aggregating around Rs 38 crore will be issued to existing shareholders on rights basis.

For the NCDs, the coupon rate will be determined by the directors and each warrant would carry a right to convert into one equity share.

Simultaneously, the existing equity share of face value Rs 100 will be subdivided into 10 shares of Rs 10 each.

The company has been advised by HSBC Securities and Capital Markets (I) Pvt Ltd for the issue which is part of the company's ongoing restructuring programme. The funds from the issue will be utilised for both capital investments as well as repaying exist ing loans, said the release.

``The rights issue is an integral part of the company's comprehensive restructuring programme and will allow the company to proceed with its investment plans in India, and at the same time, allow us to reduce our borrowings and thereby our financial cost . This in turn will help improve the financial bottomline,'' said Mr Torsten Nordgren, Managing Director, SKF Bearings India Ltd.