Kolkata: Haldia Petrochemicals (HPL) has called a crucial board meet on 29 October to discuss the issuance of shares to financial institutions and approval of annual accounts for the last three years, a source told PTI.
Following the Calcutta High Court’s verdict on 21 September, HPL would have to issue shares worth Rs127 crore to a consortium of 25 institutions led by IDBI.
The source added the shares would be issued at a face value of Rs10.
Issuance of shares to the financial institutions was due to conversion of loans into equity, which formed a part of the debt restructuring package for HPL.
The source said owing to the long and ongoing legal battle between the two principal promoters, the West Bengal government and The Chatterjee Group, the board could not approve the company’s annual accounts for the last three financial years.
The existing shareholding pattern of HPL is, IOC (8.19%), WBIDC (51.67%) and the Tatas (2.46%).
Shareholding of TCG and its associates would be 37.68% in HPL whose paid up capital stands at Rs1,831 crore.
The West Bengal government has been locked in a battle with TCG for control of HPL since the time IOC was allotted shares of the company by the state.
The Calcutta High Court had set aside an order of Company Law Board (CLB) that directed the West Bengal government to transfer 155 million shares of HPL to TCG, while upholding IOC’s entry into the company.
On 25 September, the Supreme Court put on hold the High Court judgement and directed the state government to sell all its shares in HPL to TCG.
A bench headed by Justice Ashok Bhan temporarily deferred the high court order for four weeks after senior counsel F S Nariman, appearing for Chatterjee Petrochem (India), sought a status quo order citing that the company had not been given a copy of the judgement.
The bench directed that the interim order dated 16 February, passed by the high court, continue for four weeks from then.