Nitco board okayed debt restructuring plan from JMFARC

Tiles maker Nitco's board today approved the sanction received from JM Financial Asset Reconstruction company (JMFARC) for debt restructuring plan.
Nitco will increase its authorised share capital to Rs 230 crore from Rs 60 crore, it said in a regulatory filing.
The board also approved allotment of 70.61 lakh shares of face value of Rs 10 each at the premium of Rs 103.29 to JM Financial Asset Reconstruction Ltd.
Nitco's board approved to "increase in authorised share capital of the company from Rs 60 crore to Rs 230 crore comprising of equity share capital Rs 80 crore and preference share capital Rs 150 crore and alteration of capital clause of MoA," the company informed.

However, it would be subject to approval of members in the EGM, the company said.
It has plans to issue and allot 61.78 lakh warrants aggregating to Rs 70 crore on preferential basis to JMFARC.

"Each warrant will be converted into one equity share of Rs 10 each at a premium of Rs 104.29," it said.
It will also "convert part of the company's debt into 1.01 crore fully paid equity shares of face value if Rs 10 each at par to be issued to JMFARC".
It would also convert part of company's debt into 500 non convertible debentures of Rs 10 lakh each totalling Rs 50 crore to be issued to JMFARC.