Murugappa Group’s firm Tube Investment of India Ltd. (TIIL) on Thursday said that its board has approved the proposal of raising Rs 350 crore from Azim Premji Trust and SBI Mutual Fund. It will be allotted shares to both the entities, which does not belong to the promoter/ group’s promoter on a preferential allotment basis or through private placement basis, said the company in an exchange filing.
Azim Premji Trust will be getting 27.33 lakh shares worth Rs 200 crore while SBI Mutual Fund’s two schemes, SBI Focused Equity Fund and SBI Magnum Midcap Fund will get 15.03 lakh shares and 5.46 lakh shares worth Rs 110 crore and Rs 40 crore respectively. Both entities will be getting shares at Rs 731.70 each. For seeking the approval of the shareholders for the allotment an Extraordinary General Meeting (EGM) will be held on 21 December 2020.
In August, TIIL and CG Power and Industrial Solutions Ltd. entered into a securities subscription agreement to acquire a majority stake of 56.61 per cent through a combination of investments worth around Rs 700 crore. TIIL will get 64.25 billion shares at Rs 8.56 each aggregating Rs 550 crore. This will give Tube Investments a stake of 50.62 per cent in CG Power.
Tube Investments would also be allotted 17.52 billion warrants which will be convertible to an equal number of shares within 18 months from the date of allotment for Rs 150 crore. After, the conversion of warrants into shares, Tube Investments stake in CG will increase from 50.62 per cent to 56.61 per cent.