Hyderabad, Aug 6: Another BV Raju group company Raasi Refractories has proposed to issue 10 lakh shares on a preferential basis to one of its core promoter and family member, M Haritha, at a face value of Rs 10 per share.The board recently approved the allotment, according to company sources. The company will now seek shareholders' approval for the allotment at its annual general meeting on September 28, 1998. The issue is, however, subject to the Sebi guidelines, said the source.Of the nearly 30 lakh equity shares of the company, Haritha holds about 3 lakh shares (10 per cent). After the proposed allotment, Haritha's stake will increase to 32.69 per cent, consolidating the family's control in the company.
According to Raasi Refractories, in view of the bad stock-market conditions it has opted for the preferential route to fund its proposed Rs 3-crore expansion. Further, the company's shares are being quoted about Rs 5 on the bourses.
In view of increased demand for the basic and special refractorybricks, the company proposes to expand the capacity from 23,500 MTs to 30,000 MTs and has already obtained the necessary aprrovals, the source said.
The company also plans to manufacture value-added products such as Mac Carbon and Mac Chrome, for which the demand is increasing from steel and cement plants owing to structural changes in their operations.
The expansion costs will be part-financed through the Rs 1-crore preference issue, while the balance will be funded by institutions, said the source.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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