Hinduja Foundries to raise around Rs 400 crore

The move is a part of the company's plan to improve its net worth

 

Hinduja Foundries, the foundry arm of Hinduja Group, has plans to raise around Rs 400 crore.

The company has received the Board's approval to raise the money by way of issue of securities and would seek the approval of the shareholders through a postal ballot, said an announcement by the company.

The firm also reported a net loss of Rs 95.72 crore during the quarter ended September 30, 2015 against a net loss of Rs 58.46 crore, a year ago. Its significant accumulated losses, as of September 30, 2015, have eroded the net worth. In February 2013, the company had intimated to the Board for Industrial and Financial Reconstruction (BIFR) about erosion of more than 50% of the company's net worth.

The company said that it has initiated steps to improve its operational performance/ liquidity, removal bottle necks, relating to its products, improved the net worth including raising for capital. It would look at raising capital by way of preferential allotment and qualified institutional placement.

"The company believes that it would be able to realise its assets and settle its liabilities in the normal course at their carrying values and that no adjustments would be required in respect of the carrying value of assets/ liabilities as at September 30 ,2015," said the company earlier.

As a part of restructuring initiatives, to improve overall profitability and performance, the company had announced Voluntary Retirement Scheme at its manufacturing units in Ennore and Ductron Casting Unit (DCU) at Hyderabad.

The company, during the quarter ended September 2015, said exceptional items of Rs 65.51 crore and Rs 136.50 crore for the quarter and twelve months ended September 30, 2015, respectively, mainly comprises expenditure incurred towards voluntary retirement arrangements.