IDBI gets 16 per cent shares in Pitti

Hyderabad: The board of directors of Pitti Laminations Ltd (PLL), the ailing manufacturer of laminations and die-cast rotors, has approved a resolution allotting shares to Industrial Development Bank of India (IDBI) and promoters of the company. With this, IDBI has ended up with an equity holding of 16 per cent on the company's enhanced equity capital.

Informing the bourse on Friday, the company said the board, which met on Thursday, has allotted 21 lakh equity shares of Rs 10 each aggregating Rs 2.1 crore to the promoters and 10 lakh equity shares of Rs 10 each aggregating Rs 1 crore to IDBI on a preferential allotment basis.

The decision is in line with the recommendations of the Board for Industrial and Financial Reconstruction (BIFR) and as part of the rehabilitation package sanctioned recently. To pave way for smooth clearance of this package, the Development Credit Bank (DCB) had withdrawn its petitions filed before the BIFR against PLL.

DCB also decided to withdraw the suit filed before the Debt Recovery Tribunal with PLL agreeing to clear the dues as per the one-time settlement scheme entered into.