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Board clears deck for Tube Investments to foray into new businesses; terminate GDP programme

Company to move into medical devices & instruments, electronic products & components, and energy-related products

May 12, 2022 / 09:24 PM IST
Founded in 1900, Murugappa Group runs over two dozen companies, of which 9 are publicly listed.

Founded in 1900, Murugappa Group runs over two dozen companies, of which 9 are publicly listed.

 
 
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The Tube Investments of India Limited (TII), a Murugappa group company, is gearing up to make a foray into newer areas with its board approving an amendment to the object clause of its memorandum of association (MoA).

The board, which met on Thursday evening, approved insertion of three new sub-clauses in the MoA to facilitate the company to engage in the businesses of medical devices & instruments, electronic products & components and energy-related products.

The board decision will now have to get the shareholders’ nod.

The board also approved the termination of the Global Depository Receipts (GDR) programme. It chose to do so in view of the small number of unlisted GDRs outstanding (constituting about 0.001 percent of the equity share capital). The Bank of New York Mellon is the depository of the GDRs.

The board also approved the conversion of the remaining 8,52,33,645 share warrants into an equal number of equity shares of CG Power and Industrial Solutions Limited (CG Power), by paying the balance 75 percent subscription money, on or before May 26, 2022.

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In the previous year, the company had subscribed for 17.52 crore share warrants of CG Power for Rs 150 crore and had paid Rs 37.50 crore, being 25 percent of the total warrant subscription amount. The company exercised nine crore share warrants of CG Power out of the total warrants numbering 17.52 crore, and paid Rs 57.78 crore representing the balance 75 percent of consideration for the warrants exercised. The company holds 58.05 percent on a fully-diluted basis in CG Power as at March 31, 2022.

The board approved fresh long-term borrowing to meet its funding needs during FY23. The borrowing limit is capped at Rs 500 crore.

In the meanwhile, the company reported Q4 revenue of Rs 1,735 crore, up from Rs 1,480 crore in the same quarter of the previous year. Profit before tax (after exceptions) was Rs 173 crore as against Rs 162 crore for the same period of the previous year.
KT Jagannathan is a senior journalist based in Chennai
first published: May 12, 2022 09:24 pm
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