Date:09/09/2005 URL: http://www.thehindubusinessline.com/2005/09/09/stories/2005090902830200.htm

Back Himatsingka to issue 1:1 bonus; to go in for stock split

Our Bureau

Bangalore , Sept. 8

SILK fabric manufacturer and exporter Himatsingka Seide plans to issue 1:1 bonus even while going in for a stock split simultaneously. The board of directors of Himatsingka approved the stock split and the bonus issue on Thursday.

Himatsingka is splitting its equity share of Rs 10 each into two equity shares of Rs 5 each and plans to issue a bonus share for each share held. "The stock split is mainly to enhance liquidity in the market," said Mr P. Chinnaraj, Senior Vice-President, Finance and CFO, Himatsingka. Promoters own about 61 per cent of the stock, while institutional investors hold some 18 per cent and remaining 21 per cent is held by retail investors.

Himatsingka directors also approved the company's plans to raise up to $60 million in one or more tranches through the issue of fresh equity or through convertible share warrants or global depository route or foreign currency convertible bonds.

The company proposes to use part of the proceeds towards setting up new projects and the implementation of the company's business strategy that may include acquisitions, meeting the increasing working capital requirements among others