Berger Paints recommends 3:5 bonus issue
Kolkata: After registering a 19.4 per cent growth in consolidated net sales at Rs1,030.50 crore in 2005-06 (Rs863 crore ) and 34.5 per cent in net profit at Rs74 crore (Rs55 crore), the Board of Directors of Berger Paints India has recommended bonus shares in ratio of 3:5, i.e. three new shares will be issued for every five held.

The company has also declared a dividend of 50 per cent, which together with an interim of 50 per cent, takes the total to 100 per cent for 2005-06.

According to the company the proposed bonus issue would push up the company's paid-up capital from the present Rs39.86 crore to Rs66.4 crore.

Subir Bose, managing director of the company said for the first time Berger became the second largest paint company in the country in terms of consolidated net sales and having overtaken Goodlass Nerolac by an estimated Rs10 crore he said. He attributed the improved performance of the company to a combination of factors such as re-launching of the brand Lewis Berger and bold initiatives like introduction of innovative products and innovative packaging. The home painting service, presently covering 15 cities, too made considerable strides during the year, he said.
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Diamond Cables to raise Rs150-cr
Mumbai: Diamond Cables, which makes aluminum conductors, will raise funds of about Rs150 crore through preferential allotment of shares, and debt from Clearwater Capital in order to fund its expansion programme. The company will issue 26 lakh shares and warrants to Clearwater on a preferential basis for Rs24.70 crore, the company informed the Bombay Stock Exchange. Each warrant would be convertible into one equity share within 18 months from the allotment, pursuant to which Clearwater would acquire a 14. 9 per cent stake in the company.

The equity shares and warrants are proposed to be allotted at a price of Rs95 per share (including a premium of Rs85 per share), the company said.

The company would also raise additional debt of Rs125 crore from Clearwater, the proceeds of which would be used for capital expenditure plans and to infuse long-term working capital funds into the business.
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