Promoters to infuse Rs 2.50 cr to revive Vadilal

Vadilal was declared as a sick company by the BIFR, which sanctioned its revival plan in 2007

Vadilal Dairy International Ltd (VDIL) today said its promoters have decided to infuse Rs 2.50 crore to revive the sick company.

Vadilal was declared as a sick company by the Board for Industrial and Financial Reconstruction (BIFR), which sanctioned its revival plan in 2007.

As per the rehabilitation scheme, promoters were required to infuse Rs 2.50 crore via capital contribution. Promoters were given an exemption on converting the capital amount into equity shares and ceiling on their holdings in the company.

Vadilal in an extra ordinary general meeting held on March 30, 2013 approved the issue of shares to the promoters against the capital contribution of Rs 2.5 crore.

"...25,00,000 equity shares of Rs 10 each aggregating to Rs 2.50 crore has been issued and allotted to promoter/ promoter group," the company said.

After the allotment of these shares pursuant to BIFR orders, the promoters' holding in the company will be increased to 92.71 per cent from the current 66.45 per cent, it said.

Shares of Vadilal fell by 3.41% to settle at Rs 4.25 on the BSE today.