The board of directors of BS Ltd has decided to increase the authorised share capital of the company from Rs 50 crore to Rs 77 crore.

The board considered raising funds of up to $150 million either through foreign currency convertible bonds or other modes and plans to seek the members’ nod.

The move comes in the backdrop of the Hyderabad-based company, engaged in transmission and distribution and tower business, deciding to acquire businesses of four companies for a total consideration of Rs 937 crore.

The acquisition of businesses of Agarwal Steels Structures, Rajesh Sandhi Infras & Metals, NHS Metals, all based in Hyderabad, and Durafest Automotive based in Visakhapatnam, is through slump sale. That is acquisition of select businesses of these companies.

“The acquisition of businesses engaged in tower manufacturing, component manufacturing, anti-theft fasteners, steel structures, transmission line hardware, and related EPC business would be complementary to the company’s core business of transmission and distribution networks for power and telecom,” Rajesh Agarwal, Chairman and Managing Director of BS, told BusinessLine.

These new areas would enable the company to make an entry into railways electrification EPC apart from strengthening its core tower business. The acquisitions will be undertaken through a business transfer agreement.

The board proposes to issue and allot up to 22,30,95,100 equity shares of face value of Re 1 each at a price determined as per SEBI norms.

BS shares were trading at Rs 40.65, down 3.56 per cent during the day.

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