The premium to be charged from existing shareholders will be determined by the committee of directors appointed by the board for the purpose. The proceeds of the issue will be used for normal capital expenditure and to increase the company's long term resources. On the Bombay Stock Exchange, the scrip is hovering around its yearly low of Rs 15 with Friday's closing price at Rs 17. Its 52-week high was Rs 32.

The amount to be raised would vary between Rs 8 crore and Rs 10 crore depending on the actual premium fixed for the rights issue. After the rights issue, the paid-up equity capital will go up to Rs 20 crorefrom Rs 16.03 crore, at present. In 1998-99, the company has a term loan repayment liabilities of Rs 5.08 crore. In 1997-98, Universal Cables had reported a turnover of Rs 200 crore, against Rs 228.73 crore in the previous year. Net profit slumped from Rs 7.58 crore in 1996-97 to Rs 3.98 crore in 1997-98.