Muthoot Finance gets board nod for dilution of equity shares

Will raise the public holding of its shares to 25% from the current 19.88% so as to satisfy the Sebi stipulation

Muthoot Finance today said that the company's board has approved issuance of further equity shares to achieve the requirement of minimum public shareholding of 25%.

"The Board of Directors of the Company has approved, subject to the approval of the shareholders of the Company and regulatory approvals, as may be required, the issuance of further equity shares of face value of Rs 10 each for achieving the minimum public shareholding of 25%," it said in a filing to the BSE.

The Board of the company at its meeting held on October 29, 2012 has decided to raise the public holding of its shares to 25% from the current 19.88% so as to satisfy the Sebi stipulation of a minimum public holding of 25% by May 2014, it said in a statement.

This dilution may be through any of the modes approved by Sebi from time to time in one or more tranches or in combination of including institutional private placement, subject to shareholders approval, it added further.

The issuance of equity shares can be done through public issue, rights issue or private placement or any other mode provided by Sebi, it added.