Nod for BLSA to hike stake in Bausch & Lomb India in event of a shortfall
FE Investor Bureau
NEW DELHI, January 2: The foreign promoter of Bausch & Lomb India, Bausch & Lomb South Asia Inc (BLSA) has received the SIA nod for hiking its stake in the Indian subsidiary in the event of any shortfall in its Rs 35.6-crore rights issue which opens on January 12. In the case of subscription falling below the stipulated 90 per cent, it would enable the company to raise its stake from 42 per cent to 72 per cent in Bausch & Lomb India. BASL has already pumped in its share of Rs 11.94 crore in the company.At present, the company's scrip is changing hands at a hefty premium of 75 per cent to the offer price of Rs 40 at Rs 70.25. BLSA has already acquired 3.35 lakh shares from the erstwhile promoters, Montari Industries and its associates as per the stock purchase agreement at a price of Rs 51. Montari Industries Ltd (MIL) still holds 17.48 lakh shares (or 11 per cent) in the company. Two of MIL's associate concerns -- Montari Chemicare Investments and Montari Agrochem Investments Ltd -- figure among the top
10 shareholders of the company with a holding of 4.08 per cent and 1.48 per cent, respectively. The public hold 55 per cent in the company and FIs/banks/mutual funds/FIIs together hold 2.61 per cent. The present rights issue, in the ratio of four shares for every seven shares held, is the second one from the company. Post-rights, the paid-up capital of the company will rise from Rs 15.56 crore to Rs 24.47 crore. The company is tapping the shareholders mainly to repay its long-term liabilities. The company has kept aside Rs 21.21 crore for this purpose and the liabilities are on account of early redemption of 17 per cent non convertible debentures issued in 1993. The long-term liability also includes payment of a part of term loan from ICICI. Besides, Rs 13.04 crore is earmarked for meeting its long-term working capital and Rs 10.74 crore for capital expenditure. Apart from the rights issue proceeds, the fund requirement will be met from Rs 9.4 crore as internal accruals. The company has been in the
red for the past five fiscals. In 1997, it reported a net loss of Rs 56.39 lakh on a total income of Rs 61.03 crore. The company has a carry-forward loss of Rs 20.23 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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