Hinduja Foundries proposes to raise Rs.300 crore through the issue of 9 per cent redeemable, non-convertible, cumulative preference shares to the promoters. The company will be holding an extraordinary general meeting on July 4.
A notice sent to the shareholders said that the company is facing many business challenges and the board considered it necessary to strengthen the capital of the company to successfully get over these challenges. The operations were adversely affected due to steep increase in input costs, increased borrowing costs, exceptional items on account of voluntary retirement and other settlement arrangements with the employees and incremental power costs.
The directors have considered it expedient to make the issue of preference shares on a private placement basis to the promoters to ensure full subscription, to minimise the cost of issue and raise the required funds in the shortest time.