Comments
BM Khaitan Group outfit McNally Bharat Engineering Co Ltd said on Monday that it has issued 1 crore cumulative non-convertible redeemable preference shares to Mridula Mohta, an HNI, and 50 lakh to Vyana Ventures Pvt Ltd, a body corporate worth Rs 3.5 crore.
In March, it had placed preference shares of Rs 40 crore to Tata Capital Financial Services Ltd.
The Rs 100 face valued preference will have a dividend coupon of 11.5 per cent, Prabir Ghosh, Wholetime Director and Group CFO, told Business Line .
Earlier during the financial year, the company had taken permission of the shareholders to issue preferential shares worth Rs 100 crore. The fund is to be utilised for long-term capital without affecting its ability to borrow or the debt-to-equity ratio.
“During the current financial year, preference shares worth Rs 55.5 crore will be placed to other investors,” Ghosh said.
According to the provisions of the Companies Act, 1956, the preference shares do not have voting right unless the company defaults on dividend payment to these specific group of shareholders.
Promoters hold 32.28 per cent of paid-up capital of the company.
On Monday, the McNally Bharat stock closed at Rs 55.90, up 1.64 per cent, on the NSE.
jayanta.mallick@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.