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Thursday, January 05, 2006

Gangotri Textiles to go public

Coimbatore-based Gangotri Textiles, a player in the men’s wear segment, plans to increase its authorised capital from Rs 10 crore (Rs 100 million) to Rs 25 crore (Rs 250 million) through an issue of securities in the form of public offering. The company plans to enter the capital market in a month’s time, according to a company official - reports Business Standard.

The resources would be used to finance its expansion plans to enter the eastern market with its brand ‘Tibre’. The company is also planning to increase its production capacity four-fold from the present 1,000 pieces per day.

Gangotri Textiles has informed BSE that the members, at the 16th annual general meeting of the company, held on September 24, 2005, have decided for the declaration of dividend at Rs 3 per share on equity shares of Rs 10 each for the year ended March 31, 2005.

The board authorised the company to borrow from time to time, any sum or sums of money, with or without security and upon such terms and conditions as they may think fit, notwithstanding that the monies to be borrowed together with the monies already borrowed by the company (apart from temporary loans obtained from the company’s bankers in the ordinary course of business) may exceed the aggregate of the paid-up capital of the company and its free reserves that is to say, reserves not set apart for any specific purposes provided however, that the total amount so borrowed by the board of directors shall not exceed a sum of Rs 500 crore (Rs 5 billion) at any one time.

The board has also approved stock splitting and it has been decided to split all the existing 48,00,000 equity shares of Rs 10 each into two equity shares of Rs 5 each and by allotment of shares of face value of Rs 5 each equivalent to the holding each one of the member of the company may have, as on a date, to be notified by the board of directors in this regard.

The other items considered in the AGM were to issue and allot equity shares or share warrants convertible into equity shares, to any persons, whether or not such persons are shareholders of the company, at such premium as the board may decide for an aggregate sum not exceeding Rs 75 crore (Rs 750 million) including the premium amount.

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