Pune, April 3: Finolex Industries Limited is introducing a stock option scheme for its employees. The company would be establishing a trust and it will reserve 50 lakh equity shares for allotment to the trust at par value of Rs 10. The company will also be providing interest-free loan of Rs five crore to the trust to enable it to subscribe to the equity shares. Mr PP Chhabria, chairman, Finolex Industries, made this announcement at the extra-ordinary general meeting held on Tuesday, to seek shareholder's approval for the buy-back of shares.The company will be setting aside Rs 60 crore for buy-back of shares representing 12.9 per cent of the paid up capital and free reserves. The maximum price limit for the buy-back will be Rs 40 per equity share. The buy-back will be done, through open market purchases, for which the company intends to appoint two brokers to purchase the shares on behalf of the company.
Speaking on the prospects of the company, the chairman said that with the abolition of surcharge on import duty on PVC, the effective duty protection has gone down by almost five per cent and could result in lower price realisation for PVC temporarily.
Meanwhile Finolex Technologies is set to start commercial production of optical fibre by November 2001 from the Urse plant.
The company will be investing Rs 350 crore in the project, of which it has already invested Rs 100 crore in the first phase. Finolex Technologies has got into a technology transfer tie up with Bular, a California-based company for this project.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
