IFC picks 11.48% stake in Granules India

Granules India Ltd has announced that the International Finance Corporation (IFC) has agreed to subscribe upto 22,00,000 equity shares of the Company of the face value of Rs 10/- each (which will be 11.48% of the post issue capital) subject to the approval of Board of Directors and Shareholders of the Company.

The Board of Directors of the Company at its meeting held on May 09, 2007 has passed a resolution inviting the approval of shareholders for issuing upto 22,00,000 shares to International Finance Corporation of the World Bank at a price of Rs 118.10 per share.

Commenting on the development, Krishna Prasad, Managing Director, of the Company, said, "This would be the last round of major equity dilution for the Company in the foreseeable future and marks the completion of the current find raising exercise that Granules announced in December".

IFC is also considering a Long Term Loan assistance of USD 9 mn to the Company.

Mr. Prasad also added "We are looking forward to this investment of debt / equity, which will strengthen the Balance Sheet of the Company and gear us for delivering the high growth contemplated by us. We feel that this also reiterates the strength of the business model of Granules and will definitely enable the Company to gear up the internal systems to meet the high-growth phase we are getting into."

The stock was trading at Rs.125.10, down by Rs.0.15 or 0.12%. The stock hit an intraday high of Rs.128.90 and low of Rs.124.65. The total traded quantity was 44455 compared to 2 week average of 181165.

Source : Equity Bulls

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