Calcutta, April 3: The AV Birla group’s stake in Bihar Caustic and Chemicals is set to rise substantially as a consequence of the company’s ongoing rights issue. Bihar Caustic is a joint venture between the AV Birla group and the Bihar State Industrial Development Corporation.
The latter holds 26 per cent of the company’s shares now, but the state-run corporation has indicated to the company’s management that it would not subscribe to the rights issue.
The AV Birla group has given an undertaking that it will pick up the shares denounced by the corporation, as well as other shareholders. The group, at present, holds 25 per cent in the company through Hindalco Industries and Pilani Investment.
Bihar Caustic is offering two equity shares for one held, at Rs 10 each. The proceeds of the issue — Rs 15.6 crore — will finance a 30 megawatt power plant that has already been set up.