Shree Ganesh Jewellery House Ltd (SGJHL) plans to issue equity shares to its promoters on preferential basis.
The proceeds of the preferential issue will be used to “enhance the long-term financial resources of the company which will enable it to improve its operating performance,” according to the company’s notice for the postal ballot. It has sought shareholders’ approval for the equity issue as also increasing borrowing powers. The ballot closes on March 14.
SGJHL’s board, on Thursday, approved the issue of 1 crore shares of Rs 10 each on preferential basis to promoters at a price of Rs 150 a share, the company informed BSE.
“The proceeds will also be utilised for making investment in shares and securities, providing loan and advances and to repay its borrowings,” the notice said.
The company has also sought shareholders’ approval for increasing the authorised share capital to around Rs 195 crore from Rs 150 crore.
The notice further said, “The increasing business operations and future growth plans of the company would necessitate restructuring of the borrowing limits by authorising the board of directors to borrow monies which may exceed at any time the aggregate of the paid-up capital of the company and its free reserves but not exceeding Rs 5,000 crore.”