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Ceat floats 3:10 rights issue
Ceat
has announced a rights issue according to which the company's
shareholders would get three rights shares for every 10
shares they hold.
The issue is priced at Rs 50 per share, which is at 47.14
per cent discount the previous closing of Rs 94.60 on
the Bombay Stock Exchange.
The company intends to utilise proceeds from the rights
issue to augment its long-term capital. Ceat said the
rights issue was priced at a discount keeping in view
the interest of the shareholders to reward them.
The RPG group, which owns the company, is the largest
shareholder with over 41-per cent stake in Ceat while
financial institutions hold close to 30-per cent stake
in the company and private corporate bodies hold nearly
7 per cent. The balance is widely held by the public.
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Hindalco
approves rights
Hindalco
Industries has approved a 1:4 rights issue. Shareholders
of the company will get one share for every four held.
The issue, which is expected to mobilise nearly Rs 2,500
crore, will part finance the company's expansion.
Going by ratio of the offer and the size of the fund aimed
for, market sources said the issue would be priced at
Rs 108-110 a share.
The company has appointed JM Morgan Stanley Private and
DSP Merrill Lynch as managers to the proposed issue. Amarchand
& Mangaldas and Suresh A. Shroff & Co have been
appointed as legal advisors.
The funds would be used to fund expansion plans for which
the company has an outlay of Rs 12,000 crore.
The expansion projects include brownfield expansion of
its alumina facilities at Muri, Jharkhand from 110,000
tonne per annum to 4,50,000 TPA; and at Belgaum, Karnataka
from 3,50,000 TPA to 6,50,000 TPA; brown field expansion
of the aluminium facilities at Hirakud, Orissa from 65,000
to 1,46,000 TPA with captive power units.
The
company is also setting up Aditya Aluminium - a fully
integrated green aluminium complex in Orissa with an alumina
capacity of 1 million TPA (expandable to 1.5 million TPA)
and aluminium capacity of 2,60,000 TPA (expandable to
3,25,000 TPA).
Hindalco will also participate in 55 per cent equity investment
in Utkal Alumina International Ltd, a joint venture company
with Alcan Inc, for a 1-1.5 TPA alumina facility in Orissa.
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Suzlon
IPO oversubscribed 15 times
Mumbai: The IPO of Suzlon Energy has received
bids 15 times more than the issue size on the first day
of opening with maximum bids coming at upper price band
of Rs 510. The lower price band is Rs 425.
The
NSE Web site said, the combined bids on BSE and NSE were
for 44.34 crore shares compared to the issue size of 2.93
crore shares.
Most
of the bids received were from institutional investors
and FIIs applied for maximum number of shares. The issue
closes on September 29.
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Sujana
Metals completes preferential allotment
Hyderabad:
Sujana Metal Products has made a preferential allotment
of 85 lakh shares to specified foreign institutional investors,
corporate bodies and individuals and 50 lakh compulsorily
convertible warrants to promoters at a price of Rs 62
a share.
The
company has received an amount of Rs 55.8 crore towards
the above equity and warrants. This was stated at a meeting
of the board of directors of the company held today. Under
the prevailing SEBI Guidelines, preferential allotment
of equity will attract a three years lock-in to promoters
and one-year lock-in to non-promoters, according to company
release.
Funds
raised from the above dilution of equity will be utilised
for expansion of galvanized transmission tower manufacturing
capabilities.
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