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Debashis Chaudhuri
New Delhi, Oct 25: Modicorp, the holding company of the Rs 2,300-crore BK Modi group, is planning to tap the international capital market. This is part of a consolidation plan for the BK Modi group under which Modicorp will hold stakes in different group companies for the shareholders at large.
Modi said that the strategy is to attract dollar investment in the holding company. ``We are working on the international float and have not finalised the instrument through which we will raise the funds,'' he said.
This will enable Modicorp, which is being moulded on the lines of Tata Sons, to get listed on overseas bourses.
Modi has merged all the shareholdings of the group in different companies under the Modicorp umbrella to have one consolidated balance sheet for the group.
He said that Modicorp will have a large equity base which will enable it to leverage funds from both the international and domestic creditors. Further, it will consolidate the share-holders' value in all the group companies, headded.
Currently, the companies under the Modicorp umbrella are, Modi Xerox Ltd, Alcatel Modi Network Systems, Modi International Paper, Modi GBC, Graphtech India, Modi Rubber Ltd, Modi Olivetti, Modicom Network and Modi Telstra.In all the companies barring Alcatel Modi, Modi Xerox, Modi International Paper and Modi Rubber, Modicorp holds 51 per cent.
Alcatel Modi Network is so far the only company where Modicorp has lower stake-holding than its partner. While, Alcatel holds 51 per cent in the company, Modicorp holds 49 per cent.
In ModiXerox the original 40 per cent stake-holding of Modicorp has undergone change following the branching out of two more companies Modi Xerox Financial Services Ltd and Modi Xerox Software Services Ltd.And, in Modi International, Paper Modicorp holding is 40 per cent while, the group holds approximately 15 per cent in the flagship Modi Rubber.
On the overall strategy of the group, Modi said that the key lies in successful joint ventures. ``We have pioneered the jointventure route and all our partners are very happy with us,'' he added.
``The point is to find a proper balance with the MNCs which will help the country's industry to perform better,'' said Modi.
Significantly, Modi has already tied up with big names such as Alcatel Telecom, Continental AG, International Paper, Singapore-based IPC Corp, Olivetti, Hong Kong-based Distacom, Motorola and Telstra International.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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