New Delhi, Oct. 14: Indo Rama today bought back its shares held by IFCI worth about Rs 8.94 crore.
On the basis of a buy-back agreement that the firm had entered with its creditor IFCI earlier, the ailing state financial institutions today sold 5,477,334 shares of Indo Rama Synthetics (India) Ltd at Rs 13.06 per share to the Delhi-based company.
Speaking to The Telegraph, managing director . P. Lohia said, “We are buying back the shares from IFCI, in tune with a buy-back agreement. With this, we, as promoters, are increasing our stake in the company. The promoter's stake has now gone up from 52 per cent to 56 per cent, said Lohia.
T. K. Balan, deputy general manager, IFCI, said, “The buy-back agreement was made two years back when Indo Rama took a loan from IFCI.” The loan was converted to equity at par, at a time when the shares were quoting Rs 7 a share on the understanding that a fixed return would be guaranteed.
Though the pact was with Indo Rama, with the parent company splitting into two, the shares held by IFCI too were split in the ratio of 80:20 between Indo Rama Synthetics and Indo Rama Textiles Ltd.
The board of Indo Rama held its meeting here today and announced an interim dividend of 10 per cent, after announcing its second quarter results
The company announced an interim dividend of Rs 1 per share (10 per cent on an equity share of par value of Rs 10) for 2003-04. The record date for the payment of dividend shall be November 7, 2003.