Usha Promoters Get Nod To Hike Stake

Shareholders of Usha International have voted in favour of the resolutions to facilitate the promoters of the company to hike their stake to 51 per cent through a preferential

allotment of four lakh equity shares.

The company announced the poll results on Tuesday and said 86 per cent of the shareholders voted for the resolutions.

The price of share, being worked out according to the Securities and Exchange Board of India (Sebi) guidelines, is estimated to be Rs 140, said Siddharth Shriram, chairman, Usha International.

He said the promoters had feared a take over by a section of the shareholders led by a broking firm, Vijay Bhushan & Co, and a few other of the companys associates.

 

On May 29 the company had convened an annual general meeting to consider the two resolutions.

First, a preferential allotment of four lakh equity shares to the promoter companies, at a price and on terms in accordance with the Securities and Exchange Board of India (Sebi) guidelines, to enable them to increase their stake from 40.5 per cent to 50.5 per cent.

The second resolution was to authorise the board of directors to give loans and guarantees to other body corporates up to a limit of Rs 30 crore.

The company said the resolutions were put to vote following demand to that effect by a few shareholders.

However, the ratification of the shareholders cannot be implemented immediately as the Delhi High Court has stayed the company's move,. This was done in response to a petition filed against it, until further hearing on July 10, 1997.