Deccan Chronicle Holdings Ltd has appointed a committee comprising three directors of the company to hold discussions with Srei Infrastructure Finance Ltd to take up the issue of conversion of part of its outstanding loan into equity.
The Hyderabad-based media company and publisher of English daily Deccan Chronicle , has informed the BSE that the board of directors on January 16 approved a proposal to constitute and authorise three of its directors to consider the allotment of equity shares on preferential allotment basis to prospective investors.
The board of directors discussed the issue of the conversion notice received from SREI Infrastructure Ltd, one of its lenders for conversion of part of its outstanding loan into equity in accordance with the provisions of the loan agreement and applicable provisions of the Companies Act, 1956.
While the DCHL did not indicate the quantum of finance it raised from Srei, Hemant Kanoria, Chairman and Managing Director of Srei Infrastructure, had recently told
The company’s board has considered and accepted the recommendation made by the Audit Committee for appointment of joint auditors for the company. It has constituted and authorised the board committee comprising three directors of the company to finalise an audit firm out of the top-six firms in the country to act as joint auditors.
DCHL has informed the BSE that while the promoters hold 32.66 per cent stake, FIIs, DIIs and others hold 0.07, 8.18 and 59.09 per cent stake, respectively in the company.
Srei is one of the several lenders from whom DCHL has raised funds. DCHL is faced with cases for recovery from most of its lenders.
>rishikumar.vundi@thehindu.co.in
The Hindu Business Line competes with The Financial Chronicle.