Kolkata, July 21 (PTI) The B K Birla group will pump in Rs 100 crore in Kesoram Industries company, a company official said on Wednesday.
The company board approved private placement of Rs 33.33 crore in equity and Rs 66.66 crore in fully convertible warrants to Usinara Trading and Services Private Limited, part of the Birla family firm, an official said.
"The issue price will be Rs 105 per share (including Rs 95 premium) against Rs 95 as per SEBI formula. This is to show promoter's confidence in the company," Kesoram CEO P Radhakrishnan said.
The fund infusion is part of a Rs 600- crore equity raising plan which comes under the overall Rs 1,900- crore debt sustainability management strategy.
The company will hit the market with Rs 200 crore private placements and the rest Rs 200-300 crore would be raised through private placement, follow-on public offering, qualified institutions placement, or a combination thereof.
The company which has retained cement as its core business was aiming to improve cash generation to meet the debt servicing obligations.
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