Swc Bid To Hike Stake In Hyd Lamps Fails

The board said Hyderabad Lamps' present level of equity at Rs 7.48 crore is already high considering the company's present and projected turnover and no further addition to equity would be permitted.

There can be no addition to the equity of the company as the most optimistic turnover is stated to be Rs 50 crore, for which the existing equity of Rs 7.5 crore is adequate,'' it said.

The promoters of Hyderabad Lamps had submitted a proposal to Industrial Credit and Investment Corporation of India (ICICI). The board appointed an operating agency, envisaging Rs 2.5 crore from Shaw Wallace Company (SWC) as equity contribution in the company.

 

The promoters had also proposed issue of fresh equity to the tune of Rs 5 crore after one year of operation of the factory. The unit has been lying closed since March, 1994. Hyderabad Lamps is promoted by T G V Naidu and Gangappa Cables with Genelec and Andhra Pradesh Industrial Development Corporation as co-promoters.

Genelec, itself a sick company, was merged with Shaw Wallace and Company by the board last year.