A V Birla group firm Shree Dig Viay Cement has decided to issue fresh shares to the existing equity holders of the company through a rights issue.The DigVijay Board on Monday said that the company has taken a decision to go for issue of issue of rights equity shares at par for an amount of Rs 134.2 crore in the ratio of 18 equity shares for every one share held at a price of Rs 10 per share.The company is accordingly preferring an application to the BIFR for the issue of aforesaid rights equity shares and seek BIFRs approval thereof.DigVijay cement is a BIFR refereed company.On Monday,Dig Vijay Cement share rose by 4.98% to close at Rs 162.3 on the BSE.
Grasim directly holds controlling stake in two cement companies- Ultratech and Digvijay Cement while through Ultratech Cement it holds majority stake in Narmada Cement,Ultratech Clylinco and Dakshin Cements.Currently,Narada Cement is in the process of merging itself with Ultratech.Last month,the AV Birla group had decided to amalgamate Narmada Cement with Ultratech.Narmada is a subsidiary in which UTCL holds 97.8% of the paid-up equity share capital.Sources close to the development said that Shree DigVijay Cement may use the proceeds from the rights issue to pre-pay its debts.DigVIjay Cement has a debt portfolio of Rs 250 crore.
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| Posted : 1/24/2006 |
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