Hinduja Foundries at its board meeting has approved the withdrawal of the proposed rights issue due to the volatile market conditions vis-a-vis the current market price of the company shares.
The proposed issue was 1.66 crore equity shares of Rs 10 each (for cash at Rs 75 a share, including the premium of Rs 65), aggregating Rs 124.98 crore on rights basis in the ratio of 29:50.
In the opinion of the board, the options are very limited to ensure complete subscription of the issue, given the market conditions.
The company share price was up 3.34 per cent at Rs 51, on the BSE on Thursday.
The board, in its meeting on May 15, also approved to increase the authorised share capital of the company from Rs 95 crore to Rs 550 crore.
Approval was also given to issue, allot and deliver in one or more tranches on a private placement and or preferential basis not exceeding three crore9 per cent redeemable, non-convertible, cumulative preference shares of Rs 100 each of an aggregate nominal amount not exceeding Rs 300 crore in the aggregate out of the authorised capital of the company to the promoters of the company subject to necessary provisions and approvals.
An extraordinary general meeting of the shareholders of the company will be held on July 4 in Chennai.