Preferential Allotment Archives

State Bank of India to raise Rs 11,576 crore equity capital

December 9, 2013August 20, 2014Editor

State Bank of India has got government approval to raise equity capital Rs 11,576 crore in equity capital. SBI said that it will raise Rs 2,000 crore by way of a preferential equity issue to the government, which is its main shareholder, and also raise Rs 9,576 through a qualified institutional placement. The government’s approval is subject to its stake in the company not falling below 58%, from the current level of 62.3%.

Tata to up equity stake in Indian Hotels, invest up to Rs 840 crore

November 21, 2010August 20, 2014Editor

Indian Hotels has sought shareholder permission to issue 3.6 crore shares and 4.8 crore warrants, convertible into equity shares, to its promoters. This will be through a preferential allotment process and the price will be decided as per the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2009.

Wockhardt to issue additional preference shares

August 18, 2010August 20, 2014Editor

Pharmaceutical company Wockhardt Ltd is seeking shareholder approval through a postal ballot process to continue to restructure its debt, in according with a corporate debt restructuring package. The company had suffered sizeable derivative-related losses when the global financial crisis hit companies. It also had substantial debt taken for overseas acquisitions.

Tech Mahindra-Satyam: India’s first leveraged buyout?

July 9, 2009August 20, 2014Editor

At first, it might seem that Tech Mahindra’s plans did not work out, as its open offer failed, leaving it with a 43% stake instead of a 51%. This setback hardly matters, however, if the two companies merge. A merger could mean that the group could repay the entire debt taken for the acquisition, using Satyam’s shares held by Tech Mahindra, if it so wishes.

Tech Mahindra’s open offer to Satyam shareholders closes

July 1, 2009August 20, 2014Editor

When Tech Mahindra emerged as the successful bidder for the scam-ridden software company Satyam Computer Services, it seemed like the subsequent open offer would be a success.

But Satyam’s share price rose significantly, in the interim, as investors began to regain some confidence in its future, especially after its provisional results for the third quarter were made public. The company’s profitability was much better than what was feared. While the open offer was at Rs 58 the share closed today, the last day of the offer, at Rs 74.

Opto Circuits joins the long list of companies lining up to raise money.

June 3, 2009August 20, 2014Editor

Opto Circuits India has taken enabling approval from its board of directors for raising Rs 400 crore under a qualified institutional placement. The company, which makes medical equipment and electronic components, has also taken approval for an issue of warrants to its promoters. It can issue 60 lakh equity warrants to promoters, directors and employees on a preferential basis. Each warrant will fetch one equity share at a price of Rs 210 compared to the current price of Rs 186. Promoters are in a rush to get warrant issues approved.