Nagpur : ONE of the renowned financial advisory firms has recently announced open offer for acquisition of more than 6.5 crore shares of Indo Rama Synthetics (India) Limited from the public shareholders by Indorama Netherlands B V together with Indorama Netherlands Cooperatief U A, Indorama Ventures Global Services Limited, Indorama Ventures Public Company Limited.
The financial advisory firm – Ernst & Young – has been appointed as the ‘Manager to the Open Offer’ by Indorama Netherlands B V as required under Regulation 12(1) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011.
The open offer is for acquisition of up to 6,54,36,231 shares. The fully paid-up equity shares of face value of Rs 10 each represent 24.53 per cent of the expanded voting share capital of Indo Rama Synthetics (India). Upon completion of the transaction, the Indorama Netherlands B V will be in control of the company.
The Board of Directors of the country’s largest dedicated polyester manufacturer company, on January 15, passed a resolution authorising the issuance and allotment of shares at a price of Rs 36 per equity share by way of a preferential allotment for a total consideration of Rs 298.80 crore.
As per the statement published, the fund raised will be used for long-term working capital and future growth requirements of the company.
Equipped with a state-of-the-art integrated manufacturing plant at Butibori, Indo Rama has several technical collaborations with various technology leaders in Japan, Germany and USA. The company offers a wide range of polyester products which include Polyester Staple Fibre (PSF), Partially Oriented Yarn (POY), Draw Texturised Yarn (DTY), Fully Drawn Yarn (FDY) and Polyester Chips. The share price of the the company is showing significant rise for the past couple of week. The Indo Rama Group has a strong presence in Indonesia, Thailand, USA, Nepal and Sri Lanka, besides India. It has focussed business activities in the field of Textiles, Polyesters and Industrial Chemicals. When contacted, a senior officer of company refused to share details about the recent developments.
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