NEW DELHI, January 29: The Foreign Investment Promotion Board (FIPB) has cleared Ballarpur Industries Ltd's (BILT) proposal to give a 16.7 per cent stake to A L Murjan Trading & Industrial Co. Ltd of Saudi Arabia.The Thapars are expanding the equity base of the company from Rs 50 crore to Rs 60 crore to allot one crore equity shares to the Jeddah-based company at a premium of Rs 80 per share.
A L Murjan is also picking up 45 lakh preference shares with a face value of Rs 100 per share. A nominee of the overseas company will also be taken on the board of BILT.
The allotment of equity shares and preference shares will help BILT raise Rs 135 crore. Sources in BILT said that the Thapars and financial institutions are not divesting any stake in the company. The Saudi Arabian company will be allotted fresh shares. BILT is holding an extra-EGM on February 6.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
