Kesoram Industries, the diversified flagship company of the BK Birla group, on Friday said it is planning to raise up to Rs 350 crore through a preferential issue to a promoter group company. The preferential issue of equity shares to Manav Investment and Trading Company would lead to a rise in the group’s stake in Kesoram.
The promoter and promoter group held a 46.49% stake in the Kolkata-based diversified company by the end of the second quarter of the current fiscal. Manav Investment held close to 13% stake in Kesoram, according to a stock exchange filing. In a BSE filing on Friday, Kesoram said its board has explored several capital-raising options in a meeting. “Finally, a preferential issue of equity shares of face value of Rs 10 each which could include convertible warrants of an amount up to Rs 350 crore to Manav Investment & Trading Co, a promoter group company, was approved,” the filing said.
The company may also explore the possibility of induction of a partner to strengthen its tyre business. “The company going forward would further enhance the robustness of its tyre business. This could include a possible induction of a partner with specific expertise in the radial business,” the filing said.