B K Birla group firm Kesoram Industries today said its board has approved a proposal for raising up to Rs 650 crore through issue of securities.
“The board, which met today, approved to raise an amount not exceeding Rs 650 crore via qualified institutional placement of shares and/or any other financial instruments or security convertible into equity, FPO, ADR/GDR/FCCB,” Kesoram Industries said in a regulatory filing.
The board also approved disposal and transfer of the company’s Spun Pipe and the Heavy Chemicals undertakings both located in West Bengal, it added.
Such disposal will be subject to receipt of such permissions and consents, if any, that may be required, the company said.
“The company proposes to transfer and dispose both undertakings to Camden Industries Ltd, a public limited company, for a cash consideration of not less than Rs 150 crore,” it added.
The transfer of both the undertakings is proposed to be effected no later than the first half of the 2016-17 fiscal, it said.
The company’s board also approved divestment of certain of its investments in listed companies at prevailing market prices for the purpose of enhancing cash inflows.
The timing of such divestments will depend upon market conditions and any approvals required for completing such transaction, it said.
“The current market value of such investments is around Rs 470 crore in aggregate and there can be no assurance that such divestments will occur at all or that the actual value from the sale of such investments will equal to or exceed the current market value,” it added.
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