Nagarjuna Agrichem promoters to dilute up to 5% stake

Promoters of Nagarjuna Agrichem Ltd, a leading crop protection company, would dilute 4-5 per cent of their stake to comply with the Sebi guidelines, a top company official said.

"We are looking at diluting our stake by 4-5 per cent from the present 78.29 per cent," Nagarjuna Agrichem's Director and Chief Operating Officer, C M Ashok Muni, told PTI here today.

"We have to bring down promoters stake below 75 per cent as per Sebi guidelines," he said.

The company's public shareholding is estimated at 21.71 per cent. It plans to raise Rs 350 crore to fund its capacity expansion and the mode of fund-raising would be decided in the next two-months, he said.
    
"We are looking at a QIP (qualified institutional placement) and are also talking to a few private equity (PE) players. Once we decide on the valuation, we will go ahead," Muni said.
    
Besides, the company will also source funds through debt and internal accruals, he said, adding that the company has Rs 60 crore of cash.
    
The company has robust and sustainable growth plans for the near future. It has undertaken a capacity expansion programme to increase its production by 9,000 tonnes by 2011 at a total cost of Rs 350 crore, he said.