Will have different verticals for power, oil, & natural resources
Mumbai, Dec 17 Videocon Industries Ltd announced on the BSE that the company plans to create separate verticals for its power, oil and natural resources businesses. “We will have different verticals for thermal power, oil & gas and mining of natural resources including coal and renewable energy and solar energy,” said a company official.
These verticals will be housed in one or more Special Purpose Vehicles wholly owned by the company.
When asked whether shares in the SPVs will be allotted to existing shareholders and the same listed on the stock exchange, the company official refused to clarify. “We are taking this step to strengthen the company and its global assets. We want to create a strong energy vertical and all our steps are aimed towards that,” he said.
Further information on the matter will be released only in January, he added.
Some companies, in the past, issued shares in the hived off of business and listed them on the stock exchange in order that the shareholder wealth is completely impounded both pre and post restructuring of the businesses. A case in point is that of Reliance Industries which allotted shares to the shareholders in the telecom business when the latter business was hived off as part of the family settlement.
The company has allotted 1,018,523 shares at a price of Rs 448.59 per equity share through conversion of 10,350 Foreign Currency Convertible Bonds, according to a BSE release. Also, the company has allotted 1,349,726 shares at a price of Rs 477 per equity share through conversion of 13,900 FCCBs.
Videocon’s scrip on Monday closed on the BSE at Rs 616.15 down 5.04 per cent from the previous day’s close of Rs 648.85.