Ahmedabad, Sep 28 (IANS) Arvind Mills Ltd, one of India’s top textile mills, is increasing the holdings of promoters and promoter’s group in the company by 12.87 percent through the warrant issue route. The proceeds will be utilised for business expansion.
The company’s board on Friday approved the issue of 50.6 million convertible warrants on preferential basis to the promoters and promoter’s group to gather funds for business expansion. The decision is expected to be ratified by shareholders at an extraordinary general meeting of the company on Oct 23.
The authorised capital of the company post issue will rise to Rs.4.5 billion.
The company said the holders are entitled to convert one equity share against one warrant held after 18 months.
When all the warrants would be converted to equity shares, the promoter group holding in the company would increase to 46.77 percent from the current level of 33.90 percent.
The company also announced the appointment of Sanjay S. Lalbhai as chairman of the company with effect from Friday. He succeeds Arvind N. Lalbhai who passed away in August this year.
Commenting on the issue, Sanjay Lalbhai said: “The company is looking forward to expand its retail and brands business and at the same trying to manage the challenge in its core fabrics and garments business against the backdrop of the rising rupee. There is requirement of funds for the growth of business as well as a need to augment net worth.”