1:1 Rights On Cards For Maharaja Intl

This was decided at the MIL board meeting held last month, according to company sources. Both, Electrolux and the original promoter Harish Kumar, are expected to subscribe to their share of the rights issue. The current equity base of the company stands at approximately Rs 34 crore. Arjan Gursahaney, chairman of MIL and the head of the Swedish multinational's Indian operations, declined to comment on the issue. However, he said the company was likely to announce its investment and financial plans by the end of this week.

Kumar, who was absent at MIL's board meeting, also declined to comment on the issue.

 

The funding for MIL's expansion plans was a bone of contention between Electrolux, which picked up 51 per cent equity stake in the company last year, and its Indian partners, who hold over 30 per cent of the stake.

While Electrolux was keen on expansion of the company's equity base, Kumar was in favour of tapping the debt market for financing the company's expansion plans.