McLeod Russel India, a B.M. Khaitan Group company and the worlds largest producer of bulk tea, has decided to raise $30 million by issuing fresh equity. The issue is likely to be completed by the end of 2006. The money would be raised either through ADR (American Depository Receipts), GDR (Global Depository Receipts) or from the domestic shareholders. Debt or FCCBs (foreign currency convertible bonds) are totally ruled out.
At present, the Khaitans are holding 45 per cent stake in McLeod Russel but it would increase to around 55 per cent once fresh shares are issued to the shareholders of Williamson Tea, which is being merged with company. When the fresh shares would be issued, the promoters holding would be partly diluted by around six to seven per cent. The company has not yet decided on the premium that it would be charging for the new shares.
During the the first quarter of 2006-07, the sale have dropped marginally to Rs 68.46 crore from Rs 69.21 crore registered in the corresponding quarter of 2005-06. Net profit dropped to Rs 2.38 crore from Rs 10.79 crore. However, in the first quarter of 2005-06, the company had recorded other income (sale of estate) of Rs 18.69 crore. So, despite a slight fall in sales the overall average profitability of the company has improved.
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| Posted : 7/28/2006 |
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