Nicco Gets Shareholders' Approval For Rs 10cr Rights

Nicco Corporation Ltd, the flagship of the Rajive Kaul-controlled Nicco group, has secured shareholders' approval to float a Rs 10-crore rights issue on a 2:5 basis.

The resolution for the rights issue was approved at the company's extra ordinary general meeting (EGM) held here on June 18.

According to a press release, the proceeds of the issue will be utilised to part-finance the modernisation and upgradation of the various Nicco Corporation plants in West Bengal and Orissa.

The long-term fiscal resources of the company are also expected to be augmented through the issue.

The rights issue, which is being lead managed by ICICI Securities and Finance Co, is expected to raise the capital of the company by Rs 9,89,16,330.

 

The present issued share capital of the company is Rs 26.24 crore.

After the issue, the paid-up share capital of the company will exceed the present authorised share capital.

At the EGM, the shareholders also approved a resolution for a Rs 3-crore investment by the company in the equity share capital of Nicco Infotech Ltd, a wholly-owned software operations subsidiary based in the US. It is intended that the new company will develop software export business.

Nicco recently received RBI approval for converting its software division located in New Jersey, US, into a wholly-owned subsidiary.

With these changes the software activities of the company will emerge as strategic business area of the group, the press note added.

Nicco group's core business is concentrated in the manufacture of electrical cables, conductors, wires and other steel products.