Mumbai: Four leading banks including IDBI Bank and country’s largest insurer, Life Insurance Corporation of India, are likely to invest around Rs160 crore in Videocon Industries, which will be used to fuel the electronics giant’s expansion programme.
Videocon Industries is raising this amount as a part of its Rs2,161 crore fund raising programme aimed at financing its business expansion plans.
The Rs161 crore investment would be done by way of a preferential allotment and will enable the firm to meet its working capital requirements and on-going capital expenditure, the company said in a notice issued to its shareholders prior to its Extraordinary General Meeting later this month.
Other lenders, which would invest in the firm are ING Vysya Bank, Oriental Bank of Commerce (OBC) and State Bank of Patiala (SBP).
“The company is having a substantial amount of fund requirements to support the operations and growth in future. IDBI Bank, ING Vysya Bank, OBC, SBP and LIC have expressed their intention to contribute to the equity of the company by way of preferential allotment,” the company said in the notice.
Post-preferential allotment, the shareholding of the promoters in the company will come down to 66.67% from the existing 68.46% while the portion held by banks and financial institutions will rise to 3.55% from 1.29% presently.