Ifb Agro To Float 1:2 Rights Issue

IFB Agro Indusries, the Bijon Nag-promoted company engaged in liquor, shrimp and prawn business, has decided to come with a 1:2 rights issue.

The issue is aimed at increasing the capital base of the company by 50 per cent as well as raising funds of nearly Rs 4 crore.

IFB Agro had introduced the last rights issue nine years ago in the same ratio.

Sources said the IFB Agro Indusries board of took the decision to launch a rights issue of introducing 38.53 lakh equity shares of Rs 10 each, last week.

Industry sources said the increase in equity capital of the company from the existing Rs 7.7 crore through the proposed rights offer would protect it from being a soft target of hostile takeover or at least to be a subject of green mailing.

IFB Industries, the flagship company of the group, witnessed a Mumbai-based investor picking up substantial shares recently.

The company later received a verdict from Company Law Board (CLB) which froze partial voting rights on the shares purchased by the investor.