New Delhi, Nov 17: Hyundai Motors India Ltd will divest its equity during the next fiscal when the company's balance sheet is expected to start showing cash profits. The company might tap both the routes-IPO and private placement. The company needs to have good looking balance sheet before it invites others to participate in its equity, HMIL director (marketing and sales) BVR Subbu said here.Subbu, however, refused to disclose the amount of equity to be diluted. On routes of divestment, he said it might be initial public offering as well as private placement. "Both the options are open before us." He recalled that HMIL sought FIPB's proposal to dilute 14 per cent equity through private placements in 1997.
The company was getting 100 per cent premium on the shares' face value. However, it later decided against divestment until the company starts earning cash profits.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.