Euro Ceramics may raise FII limit to 49 pc | business | Hindustan Times
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Euro Ceramics may raise FII limit to 49 pc

business Updated: Nov 23, 2007 21:38 IST
Lalatendu Mishra
Lalatendu Mishra
Hindustan Times
Euro Ceramics

Foreign Institutional investor (FII) holding in Euro Ceramics Limited (ECL) is likely to go up to 49 per cent from the current 12 per cent with the company now planning to issue preferential shares and raise funds through foreign currency convertible bonds (FCCBs)/global depository receipts (GDRs) for capacity expansion.

Euro Ceramics is the country's second-largest manufacturer of vitrified tiles and also makes calcareous tiles and aluminium extruded sections from its plant at Bhachau (Kutch) in Gujarat.

The company's board has decided to issue preference shares to Malabar Wassertein Special Opportunity Fund and its associates at Rs 250 per share to raise up to $15 million. Apart from this, the proposed issue of FCCBs/GDRs/ADRs and other permissible instruments would raise up to $100 million. "The board of directors has proposed, subject to various approvals, issuance of equity shares to Malabar Wasserstein and issues of FCCBs/GDRs/ADRs to enhance the FII limit to 49 per cent," the company said in a statement.

Euro Ceramics has chalked out a Rs 575-crore expansion plan, subject to shareholder and other approvals, to ramp up capacity, besides setting up a greenfield project to manufacture tiles and allied products. The current fund-raising programme would augment its financial resources for the planned capital investment, the company said.