The Board of Directors of BS Ltd, a Hyderabad-based infrastructure company focused on EPC in power transmission and distribution, has decided to increase the company’s authorised share capital from Rs.50 crore to Rs.77 crore.
The approval, at the Board meeting on Wednesday, comes in the backdrop of the company announcing plans to acquire four other companies for a total of Rs.937 crore.
“The consideration has been decided to be discharged through preferential allotment of equity shares,” Managing Director Rajesh Agarwal said. The BS Ltd proposes to acquire the operative businesses of Agarwal Steels Structures India Pvt. Ltd, Durafast Automotive Pvt. Ltd, NHS Metals Pvt. Ltd and Rajesh Sandhi Infras and Metals Pvt. Ltd.
The acquisitions are expected to benefit by way of sustainable operational and financial synergies, improve the bidding strength of the BS, facilitate expansion into railway electrification, EPC and eliminate dependency on business critical component vendors, a statement from the company said.
The operational businesses of the firms to be acquired include tower manufacturing, component manufacturing such anti-theft steel fasteners, steel structures, transmission line hardware and related EPC businesses.
For the purpose of discharging the consideration for the acquisitions, the Board approved a proposal to issue and allot up to 22.30 crore of face value of Re.1 each at price determined as per SEBI regulations.
With the acquisitions, the company hopes to clock a turnover of Rs.10,000 crore in the next three years. In 2014-15, the consolidated total income of BS Group was Rs.2,673 crore, 15 per cent more compared to Rs.2,321 crore in the previous fiscal. Net profit rose by 7 per cent to Rs.75 crore (Rs.70 crore).
Nod to raise $150 m funds
The Board also gave its nod for raising funds upto $150 million through foreign currency convertible bonds, qualified institutional placement or by exercising a few other options.
