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| DaimlerChrysler to stay away from Telco rights issue | | | / Business Standard November 09,2001 | | | |
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| Daimlerchrysler To Stay Away From Telco Rights Issue |
| / BUSINESS STANDARD Nov 09, 2001, 00:00 IST |
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DaimlerChrysler, which has a 10 per cent stake in Tata Engineering, will not participate in the Tata major’s Rs 978-crore rights issue which closes tomorrow.
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| In the process, the additional burden of Tata Sons, the Tata holding company, will increase by almost Rs 100 crore (including the warrants that are to be converted later) if it decides to pick up the entire entitlement.
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Some of the financial institutions, which collectively have a little over 21.8 per cent stake in the company, have also decided not to participate in the rights issue.
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The Tatas had earlier said they were willing to pick up the unsubscribed portion of the rights issue. It is not known at this stage what portion of the unsubscribed portion will be picked up by the Tata group, which has a 25.35 per cent stake in Tata Engineering.
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Sources close to the Tatas confirmed that Daimler-Chrysler was not participating in the issue. An official Telco spokesperson declined to comment on the issue.
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Currently, companies, mutual funds and trusts have a combined 5.17 per cent stake in the company, while non resident Indians and foreign companies (including DaimlerChrysler) collectively have a 18.79 per cent stake.
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The public has a little over 22 per cent of the company’s equity. Foreign institutional investors have a 6.57 per cent holding and nationalised and other banks hold 0.22 per cent of the equity.
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