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Ramkrishna Forgings Ltd has decided to issue shares to International Finance Corporation (IFC) and a promoter entity on preferential basis. It has also planned preferential issue of warrants.
The proposed fund mop-up is mainly for setting up of a $97-million forged and machined auto components project at Kolabira near Jamshedpur in Jharkhand. The company has already tied up $14-million term-loan from IFC and Rs 100 crore from Exim Bank for the project.
The project is for manufacturing of auto components such as front axel beams, crankshafts, connecting rods and stub axles.
EGM on Jan 7
Equity and internal accruals would take care of project financing worth $34 million and term loans of $ 63 million would fund the balance expenditure.
The company has sought shareholders’ approvals on the proposal at an EGM here on January 7.
It has planned to issue up to 21.48 lakh shares to World Bank arm IFC at Rs 128 a share.
It also has planned preferential issue up to 7.81 lakh shares to Eastern Credit Capital (P) Ltd, a promoter entity at the same price. Some 30.77 lakh convertible warrants has also been planned for Eastern Credit at the price of Rs 130 a share.
Meanwhile, the company said it entered into an agreement for the acquisition of Globe Forex and Travels Ltd, a member of IATA.
The Rs 159.85-crore Globe Forex is engaged in the business of travel and travel related services.
On Thursday, the stock finished 3 per cent down at Rs 105.30 on the BSE.
>jayanta.mallick@thehindu.co.in
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