Chennai, Feb 7: The shareholders of the ailing Best and Crompton Engineering Ltd gave their unanimous consent to raise the company's authorised share capital by Rs 10 crore and to issue fresh shares for Rs 30 crore at an extraordinary general meeting (EGM) in Chennai on Friday.The EGM passed four separate resolutions, three concerning the hike in the authorised share capital from the present Rs 100 crore to Rs 110 crore. The fourth resolution approved the issue of three crore equity shares of Rs 10 each aggregating Rs 30 crore and thus to boost net worth which is now negative.
The management informed the EGM that the revival scheme had planned to turn the net worth positive by an infusion of additional equity and through sale of property.
However, there had been delays in the latter part of the scheme and "it is possible to make the networth positive by issue of additional equity for an aggregate value of Rs 30 crore by way of public issue and/or private placement with promoter, FIIs, OCBs, NRIs," themanagement told shareholders.
The Polysindo group, which has taken over the company, had agreed to arrange an infusion of funds to restore net worth and to enable the company to stay outside the purview of the Board of Industrial and Financial Reconstruction (BIFR). This would require the authorised share capital to be raised to issue additional equity, the management said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
