The Telegraph
Since 1st March, 1999
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Electrolux plans Rs 250cr rights

Calcutta, Aug. 23 (PTI): Electrolux Kelvinator Ltd (EKL) today said it was planning a Rs 250-crore rights issue to finance its capital expenditure projects and retire debts.

“The rights issue at par is expected to come in another couple of months and will be in the ratio of 10 shares for every seven shares held,” EKL business controller Ashok Barat said here.

Barat said they would utilise the proceeds of the rights issue to upgrade all their three existing refrigerator plants and make them CFC free.

He said the upgradation of the three plants would require about Rs 30 crore and the remaining amount would go to retire existing debt of Rs 360 crore as on June 30, 2002, which was costing them about Rs 40 crore in interest outgo.

Barat said the rights issue was such planned that in case of non-subscription of any part, Electrolux, which already holds 76 per cent of the total equity, will subscribe fully to the unsubscribed portion.

Indian promoter Harish Kumar held about 9.5 per cent of the existing share capital of EKL and the balance was held by the public.

Asked whether they had obtained the Foreign Investment Promotion Board’s (FIPB) nod for the rights issue, Barat said, “We expect to get the nod soon.”

Commenting on the company’s financial performance, Barat said during the last fiscal ended December 2001, turnover stood at Rs 460 crore and for current year they were targeting a turnover of over Rs 600 crore.

“A host of new products would be launched to further increase our market share from 27 per cent at present in the household products,” he said.

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