Calcutta, May 1: Hindustan Motors Ltd is contemplating to raise Rs 54 crore to fund its ongoing modernisation, upgradation and expansion plans at its various divisions. The board, G P Birla group, has proposed to raise this by issuing ordinary shares and/or fully convertible debentures, thereby increasing the authorised share capital from Rs 160 crore to Rs 220 crore. Hindustan Motors has called an extraordinary general meeting (EGM) of its shareholders on May 20, 1998, to ratify this proposal.The present authorised share capital of the company comprises 16 crore equity shares of Rs 10 each. The issued share capital as on March 31, 1997, is Rs 107.90 crore.
According to the EGM notice, the authorised share capital will now be 16.5 crore equity shares of Rs 10 each and 55 lakh unclassified shares of Rs 100 each with the power to the board to classify the shares into ordinary or preference at the time of the issue.
The ongoing modernisation, upgradation and expansion schemes to be implied are at itsvarious divisions -- automobile, earthmoving equipment and power product. The funds will also be utilised for setting up manufacturing facilities for the Lancer passenger car in Tamil Nadu and rural transport vehicle at Pithampur in Madhya Pradesh. The funds will also be used for augmenting long-term resources, including meeting the working capital requirements, the EGM notice said.
The Lancer car project has been set up in collaboration with Japan's Mitsubishi Motors Corporation at Tiruvallur. The car is expected to hit the road early 1998 and the plant will have a manufacturing capacity of 8000 cars in its first year of production. In a bid to tap the rural market, the company plans to manufacture specialised rugged vehicles at its Indore plant in collaboration with Australia's Oka Motor Company.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
