BPSL to raise Rs 50.4 cr through FPO to fund expansion
Mumbai, Mar 17 (UNI) Birla Power Solutions has decided to expand its market share by way of increasing the existing capacities of its products and also go for backward integration, expected to cost Rs 50.4 crore.
Company's Chairman Yash Birla told mediapersons here today that to fund the expansion and backward integration, the company will come out with a follow-on public offer of 120 lakh equity shares of Rs 10 each for cash at a premium of Rs 32 per share. The issue price of Rs 42 per share is 4.2 times the face value, he pointed out.
The backward integration envisages a seperate plant for production of Acoustic Hoods, which is presently outsourced, he said.
To a poser, Mr Birla said a part of the proceeds of the public offer will also be used to meet the margin money for working capital requirement.
Out of the total issue size, as much as 12 lakh equity shares are reserved for employees/directors, another 12 lakh equity shares are reserved for shareholders of group companies, while 24 lakh equity shares are reserved for NRIs/FIIs and 12 lakh equity shares for banks, mutual funds and domestic financial institions. Thus, the net issue to public will be 60 lakh equity shares.
Responding to a query, Mr Birla said apart from expanding the existing capacities, the company is also proposing to manufacture LPG/CNG gensets and engines, which will have a good market in the near future.
Keynote Corporate Service is the lead manager to the issue, which is opened for subscription during March 24-29 and Bigshare Services Private Ltd is the registrar to the issue.
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