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B K Birla group company Century Enka will issue 1.8 million warrants to promoter companies in a preferential allotment. The funds are being raised to meet its capex requirements and increase its long term financial resources.
The promoters own 25.23% in Century Enka, which would make it low among Indian companies.
Century Textiles and Industries, a B K Birla group company, which owns 1.83% at present, will see buy 0.9 million warrants and see its stake rise to 5.8%.
Opto Circuits India has taken enabling approval from its board of directors for raising Rs 400 crore under a qualified institutional placement. The company, which makes medical equipment and electronic components, has also taken approval for an issue of warrants to its promoters. It can issue 60 lakh equity warrants to promoters, directors and employees on a preferential basis. Each warrant will fetch one equity share at a price of Rs 210 compared to the current price of Rs 186. Promoters are in a rush to get warrant issues approved.
The additional breathing space is important as the company is going through a difficult phase. In April-December 2008, revenues grew by 7.4% to Rs 1733 crore but higher material and energy costs hit margins. Its operating profit was down by a tenth though it was still a respectable figure at Rs 193 crore.