Grasim Industries, the Aditya Birla group flagship, is in advanced stages of talks with commercial banks and financial institutions for a private placement of secured redeemable non-convertible debentures (NCDs) of Rs 235 crore, needed for investments in the power plant at Nagda and Vikram Cement units in Madhya Pradesh.
The company has also decided to seek shareholder approval to allow non-resident Indians and overseas corporate bodies to hold upto 24 per cent in the company.
Banks and financial institutions have agreed to give foreign currency or a rupee term loan of Rs 170 crore to the group's telecom joint venture, Birla AT&T, against 'security by way of pledge of shares held by Grasim Industries in the joint venture company'.
The company has sought to pass a resolution seeking shareholders' approval to allow NRIs/OCBs to hold upto 24 per cent in the company.
Grasim will also shareholders' approval at the forthcoming annual general meeting for private placement of secured redeemable non-convertible bonds amounting to Rs 350 crore and provide security by way of pledge of shares in Birla AT&T.
To meet its long-term working capital requirements and finance the purchase of five DG sets of 6 mw each and four railway rakes for the cement divisions at Raipur as well as for normal capital expenditure, Grasim had made a private placement of secured redeemable non-convertible debentures amounting to Rs 135 crore in the financial year 1996-97.
Net profit of Grasim Industries dipped by 17 per cent to Rs 274.56 crore in 1996-97 due to a slowdown in the economy, lower realisation in cement, depressed steel and textile markets and substantial increase in the prices of government controlled inputs like steam, coal, railway freight, petroleum products and power pushed.
However, turnover during the year increased by 12.52 per cent to Rs 3599.77 crore.
Birla AT&T, the joint venture between the Aditya Birla group of companies and global telecom giant AT&T, USA, has received permission to operate cellular mobile telephone service in Gujarat and Maharashtra circles (excluding Mumbai and Goa).
The total project cost of the telecom company has been pegged at Rs 1,894 crore. Banks and financial institutions have agreed to give foreign currency or a rupee term loan of Rs 170 crore against security by way of pledge of shares held by Grasim Industries in Birla AT&T.
Commercial services in Pune, Nashik, Ahmedabad and Gandhinagar commenced during the year 1996-97. Efforts are on to extend services to other cities in the two circles.
