Calcutta, May 6: Assam Company, a member of the Duncan Macneill Group, has deferred its proposed rights issue. The company informed the Bombay Stock Exchange about the decision today.
A senior company official said, “The current volatility on the bourses has forced us to take this decision. Once the election results are out and the government is formed, the stock markets might show some stability. We will then consider our rights issue.” However, the official did not want to specify any time frame.
On the present operations of the company, the official added that they are at par with the current trends in the tea industry.
The board of Assam Company had approved the rights issue on December 24, whereby the shareholders were supposed to get one share of Rs 10 against five held by them at a premium. The company was silent on the amount of premium to be paid, but market sources had said the expected premium was Rs 10.
The company had planned to mop up Rs 9 crore through the rights issue.
The total paid-up equity of the company is Rs 22 crore and the number of shares is 2.23 crore. Following the rights issue, 44.79 lakh shares were to be issued to the existing shareholders.