Date:06/02/2005 URL: http://www.thehindubusinessline.com/2005/02/06/stories/2005020600320400.htm

Back Balrampur Chini to offer equity to Citigroup

Our Bureau

Kolkata , Feb. 5

SUGAR major Balrampur Chini Mills Ltd has decided to place over 8 per cent of equity with two institutional investors, of which one is Citigroup. The company will also reduce the face value of its equity shares from Rs 10 to Re 1.

These decisions were taken by the company's board of directors on Saturday.

According to a senior official of Balrampur Chini, 17.09 lakh shares will be offered to Citigroup International Finance Corporation at a price of Rs 585 per share.

Currently, Balrampur Chini is quoted at around Rs 700 on the stock exchange.

The company will also offer another 2.24 lakh shares to New Vernon Bharat Ltd, a domestic institutional investor. The board has already approved the fresh allotment of 19.33 lakh equity shares.

The company will raise Rs 113.08 crore from the placement of these shares. According to the official, approximately Rs 100 crore will come from Citigroup and the rest, Rs 13 crore, from New Vernon.

After the dilution of the face value of Balrampur Chini's equity shares, Citigroup will hold 7.39 per cent in that company, and New Vernon's stake will be nearly 1 per cent.