Eveready Industries India is planning to raise Rs 100-120 crore through institutional placement of equity this financial year. The company would be utilised half of the amount for meeting working capital needs and the balance would primarily be used to retire high-cost long-term debt of around Rs 60 crore.
The company’s board has proposed an enabling provision before the shareholders to raise funds worth not more than Rs 150 crore through qualified institutional placement.
Eveready’s long-term loan stands at Rs 85.76 crore. Eveready currently has a paid up capital of Rs 36.34 crore and the promoters (BM Khaitan Group) hold 43.92 per cent. The fresh fund mop up would add to the paid up capital as well as dilute the holdings of the promoters.
