Erstwhile textile company, Nirlon, has called for an extraordinary general meeting of shareholders on July 7 to approve preferential allotment of 1.35 crore shares of face value Rs 10 each to a person acting in concert with promoter group and three non-promoter entities, including HDFC, to raise about Rs 75 crore.

Nirlon is constructing a Knowledge Park on 23 acres at Goregaon in Mumbai. It is an industrial park under the Centre's Foreign Direct Investment policy and an IT Park under the Maharashtra policy and is eligible for FDI under the automatic route.

Nirlon said the capital infusion would result in a savings of Rs 104 crore on account of lower borrowings and consequent interest savings as debt would be reduced by Rs 104.25 crore.

Loans & projects

HDFC has provided a securitised loan of Rs 568.49 crore that Nirlon is repaying from existing licence fees on an equated monthly instalment basis.

As of March 31, gross licence fee from phase-1 and 2 totalled Rs 8.2 crore a month, and additional licence fee from old buildings Rs 1.51 crore a month.

Currently, Phase-1 and 2 comprise 16.75 lakh sq.ft. with 10.75 lakh sq.ft. licence area. About 95.5 per cent of the licence area has been given out.

HDFC has also sanctioned a Rs 200 crore construction loan of which Rs 25 crore had been received for building phase-3. Phase-3 will have about 5.57 lakh sq.ft. of constructed area corresponding to 3.9 lakh sq.ft. of licence area. Construction began in Q4 2010 and is expected to be completed in Q2 or Q3 of 2013.

Phase-4 will start in Q4 2011 and will have 6.5 lakh sq.ft. of construction or 4.75 sq.ft. of licence area. On completion, the knowledge park would have 32.22 lakh sq.ft. of constructed or 22.76 lakh sq.ft. licence area, Nirlon said.

On Friday, Nirlon scrip closed four per cent lower at Rs 50.40 on the BSE.

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