NEW DELHI, Jan 28: The $654-million BTP Plc of UK has proposed to hike its equity in the joint venture with the RPG group from 50 per cent to 67 per cent. BTP Plc is also making the joint venture company -- RPG-BTP (India) Limited a manufacturing base for speciality chemicals for its global business. BTP Plc is a speciality chemicals company with interests in adhesives and textile coatings, leather chemicals, construction chemicals and safety equipment.The foreign company is making an additional investment of Rs 18 crore in the venture. The Indian company has issued one crore equity shares of Rs 10 each at a premium of Rs 8 per share on preferential basis to the foreign collaborator. Consequently, the company's equity would go up by Rs 10 crore with an additional amount of Rs 8 crore as premium capital.
The paid-up share capital of the company at present is Rs 20 crore, equally divided between RPG group and BTP. After the preferential offer, the equity share capital of RPG-BTP (India) Limited would be Rs30 crore, of which the foreign partner's contribution would be Rs 20 crore (67 per cent) and RPG holding Rs 10 crore (33 per cent). The RPG group currently holds 50 per cent of the paid-up share capital (Rs 10 crore) in the joint venture through KEC International Ltd. BTP is also providing technology to the venture. The joint venture company is in the business of manufacturing and marketing speciality chemicals including leather chemicals, footwear components and superplasticizer (construction chemicals).
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