Kesoram Ind To Hike Fii Stake To 30 Per Cent
Kesoram Industries, a B K Birla group company, will raise the FII limit on holding shares of the firm from the present 24 per cent to 30 per cent. In a recent amendment, the RBI changed the guidelines, so that Indian companies listed on recognised stock exchanges can have foreign institutional investors (FII)/non-resident Indians (NRIs) and/or overseas corporate bodies (OCBs) holding shares of the company to the tune of 30 per cent instead of the earlier 24 per cent limit.
Company sources said the FII shareholding limit is being hiked to take advantage of the wave of liberalisation encouraging foreign investment in India. The limit is being raised to facilitate participation by FIIs, NRIs and OCBs in the company's capital structure.
At the company's AGM, to be held early next month, the board of directors will seek a general body resolution passing the decision to hike the FII limit subject to conditions imposed by the RBI.
The company had during the year successfully issued global depository receipts for $30 million and the funds raised were used to finance the expansion project of Vasavadatta Cement and also for financing the power plants at Kesoram Cement and Vasavadatta Cement. Accordingly, 1.88 crore ordinary shares representing GDRs were allotted increasing the ordinary paid-up capital of the company by Rs 18.75 crore.
The balance amount of Rs 41 per share of the 15 lakh 17.5 per cent redeemable cumulative preference shares of Rs 100 each was called and paid-up during the fiscal 1996-97 thus making this series of preference shares fully paid-up. Fifteen per cent non-convertible debentures of Rs 33 each (being net of Rs 67 per debenture redeemed up to March 31, 1997), are redeemable end 1997.
The rate of interest has been reduced from 15 per cent to 14 per cent per annum with effect from January 1990. Premium of Rs 5 per debenture amounting to Rs 30 lakh in aggregate has been paid during fiscal 1996-97. The turnover of the company in fiscal 1996-97, including other income was Rs 658 crore, while PAT was Rs 39.96 crore. The EPS was Rs 8.13, while dividend rate on ordinary shares without considering dividend tax is 20 per cent.