Batliboi will raise Rs 50 crore via qualified institutional placements (QIP) or through private equity by diluting 5% stake, said Nirmal Bhogilal, CMD of the company. Bhogilal holds about 80% stake in the company and as per the Securities and Exchange Board of India (SEBI) norms, the promoter is liable to hold only 75% stake.
?We have received shareholders? approval to raise money via QIP. However, we are waiting for the market to stabilise before going ahead,? he said.
The shareholders? approval is valid for 12 months. The company will utilise the raised fund to repay debts, which is about Rs 40 crore, and the remaining for other business opportunities, Bhogilal said.
Batliboi?s shares on May 9 were down by 5% or Rs 2.40 to close at Rs 45.65 on the BSE.
Batliboi in April 2007, acquired Canada-based Quickmill Inc., for about Rs 22 crore and then in July 2007 acquired European firm AESA Air Engineering, SA, a loss making unit, for about Rs 9 crore.