Hindustan Motors to raise Rs14.45 crore via preferential issue

Hindustan Motors will raise around Rs14.45 crore through preferential allotment of shares to four promoter group firms. The decision was made at a meeting of the special committee of directors of the company today.

The preferential equity shares and warrants will be issued to four promoter group firms, viz, Amer Investments (Delhi) Ltd, Bengal Rubber Company Ltd, Central India Industries Ltd and Hindusthan Discounting Company Ltd, Hindustan Motors said in a filing with the Bombay Stock Exchange (BSE).

The company plans to issue up to 1,18,00,000 fully-paid equity shares of Rs5 each together with up to 1,18,00,000 warrants at a price of Rs12.25 each (at a premium of Rs7.50 per share).

The preferential issue of equity shares and warrants is, however, subject to approval of the shareholders as also other statutory approvals, the filing said.

The special committee of directors also decided to convene an extraordinary general meeting on 7 March 2012, to seek approval of shareholders for the preferential issue. 

Hindustan Motors had, last month, announced plans to launch new models of the SUV Pajero in the first quarter 2012.

The company manufactures and markets Mitsubishi Motors Corporation's Pajero and other premium vehicles in India.

Hindustan Motors also expects to get approval from the Automotive Research Association of India (ARAI) for one of its passenger carrier variants.

The company is also planning to bring out commercial variants built on the Ambassador, its workhorse.

Hindustan Motors is expected to roll out its new product portfolio from the current quarter.