ICICI Ventures plans investment, open offer in Electrotherm

ICICI Ventures plans investment, open offer in Electrotherm
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First Published: Thu, Feb 08 2007. 10 33 PM IST
Updated: Thu, Feb 08 2007. 10 33 PM IST
Mumbai: A fund of ICICI Ventures will invest at least Rs200 crore in the equity of steel and engineering firm Electrotherm (India) Ltd and follow it up with an open offer at not less than Rs600 a share, a company source said.
The source, who spoke on condition of anonymity, said, “They have to make an open offer to the shareholders as the stake is more than 15 % of the company’s equity.”
Electrotherm plans a preferential issue of 3.33 million shares at not less than Rs600 each to ‘India Advantage Fund VI’, a fund managed by ICICI Ventures.
Calculations based on data from the Bombay Stock Exchange (BSE) website showed that the share issue would translate into a 41.16 % stake for the fund on Electrotherm’s expanded equity, not counting some outstanding convertible warrants.
The market regulator has stipulated that a shareholder who acquires 15 % or more in a company’s equity must make an open offer to the existing shareholders for at least 20 % of equity.
Shares in the company rose 5 % to Rs554.10 at BSE. The company official said the funds raised from the issue would be used for the captive power plant for its steel alloy unit in Gujarat and its engineering division.
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First Published: Thu, Feb 08 2007. 10 33 PM IST
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