Mumbai: The Indo Rama Synthetics India board has decided to give the shareholders of the newly-formed Indo Rama Textiles (its spun yarn business) the option to convert their equity shares into a redeemable preference.
These shares of Rs 10 could be redeemable at a premium of Rs 20 or such higher premium as the board may determine at the time of providing the option to the shareholders for such a conversion.
The redemption will be in two equal installments of the total value at the end of three and 15 months, respectively, from the date of allotment of the preference shares. The coupon rate on the preference share will be 0.1 per cent.
Indo Rama Synthetics India had earlier approved a scheme to spin off its spun yarn and polyester businesses as two separate companies and restructuring the share capital of the company.
Accordingly, the spun yarn business of the company will be segregated into a new company by way of a demerger under section 391-394 of the Companies Act, 1956, through an order of the court.