Annual general meeting to be conducted in Chennai
The embattled Financial Technologies Ltd, the promoter of the National Spot Exchange Ltd, has sought shareholder approval to raise Rs 1,000 crore to fund its future growth opportunities.
NSEL, which shut the exchange abruptly on August 1, is facing investor wrath for failing to settle their dues worth Rs 5,600 crore.
Financial Technologies intends to explore all the fund-raising opportunities, including international and domestic public offerings, Global Depository Receipts, American Depository Receipts and any other security linked to shares in both the domestic and international markets.
The board of directors have already approved the proposal and is being placed before the shareholders for approval in the forthcoming annual general meeting to be held on September 25 in Chennai.
In a note to the shareholders, the company said since it is exploring the possibility of acquiring companies in the domestic/overseas markets to cater to future growth opportunities, it would require additional funds. The detailed terms and conditions of the issue will be determined by the board in consultation with the experts, the note added.
The company is also considering paying interim and final dividends to shareholders.
It has also sought investor approval for lending or to provide guarantee to FT Projects, presently a wholly owned subsidiary.
The company is mainly in the business of infrastructure-related activities.
The board of directors of Financial Technologies has recommended infusion of Rs 150 crore in FT Projects in one or more tranches as and when required. It has also sought shareholder approval for providing one per cent of net profit as commission to non-executive directors beginning this financial year.
In their capacity as non-executive directors Ravi Sheth, Chandrakant Kamdar, R. Devarajan, PR Barpande and CM Maniar may be deemed as interested in the resolution, it said.
Despite the crisis within the group, shares of the company rose 16 per cent to Rs 131 on Thursday, on the BSE.