Mar 20, 2013, 11.02 PM | Source: CNBC-TV18
Shekhar Swarup, ED, Globus Spirits says, in an interview to CNBC-TV18, that the funds raised will be used to set up a hub in eastern India.
Shekhar Swarup (more)
ED, Globus Spirits |
“ The entire amount will be invested to open up a hub ”
- Shekhar Swarup (ED)
In an interview to CNBC-TV18, Swarup says that the promoters' stake after the sale will stand at 56 percent .
Below is an edited transcript of the interview on CNBC-TV18
Q: What was the need to raise Rs 70 crore and what is the purpose of the allotment?
A: Globus Spirits is a 360-degree participant in the alcohol beverage industry with brands in the all the four business verticals- bulk, play, contract manufacturing, Indian Made Indian Liquor (IMIL) brand, Indian Made Foreign Liquor (IMFL). The funds will be used for creating a hub in the eastern part of India.
Q: The allotment consists of convertible preference shares. Would you be looking at options of issuing a greater tranche and will the entire amount used to open up new facility?
A: The entire amount will be invested to open up a hub that will comprise a few facilities. The details of the hub are being worked out. The allotment is of convertible preference shares- 50 lakh shares of about Rs 140 each. In addition, the promoters are subscribing to approximately 7.5 lakh warrants of about Rs 10.5 crore of which 25 percent is to be paid upfront.
Q: What kind of dilution would it entail at the end of the conversion?
A: The promoters’ stake will be at about 56 percent.
Q: How much dilution has there been in the company’s equity base?
A: At present, the promoters’ stake is 67 percent. So the dilution is approximately 11 percent.