The board of Tube Investment of India Ltd (TIIL), a Muruguppa group company, on November 26 stated that it has approved raising Rs 350 crore from Azim Premji Trust and SBI Mutual Fund.
"The Board approved the issue of equity shares of TII, having face value of Re 1 each, on a preferential allotment/private placement basis to entities not belonging to the promoter or promoter group of the company, aggregating up to approximately Rs 350 crore, subject to the approval of the shareholders of TII," TIIL said in a stock filing.
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According to the preferential allotment of equity shares, Azim Premji Trust will get 27.33 lakh shares worth Rs 200 crore. SBI Mutual Fund's two schemes -- SBI Focused Equity Fund and SBI Magnum Midcap Fund -- will get 15.03 lakh shares and 5.46 lakh shares worth Rs 110 crore and Rs 40 crore respectively. The price of each share for both the entities have been set at Rs 731.70.
Apart from these, TIIL informed that an extraordinary general meeting (EGM) will be held on December 21, in which approval from the shareholders for the allotment would be sought.
Earlier in August, TILL and CG Power signed a securities subscription agreement for acquiring a 56.61 percent controlling stake in CG Power through a combination of investment of around Rs 700 crore.
Following this, Tube Investments will get 64.25 billion shares of CG Power at Rs 8.56 apiece for a total of Rs 550 crore, giving TIIL a 50.62 percent stake in CG Power. Apart from this, TIIL will also get 17.52 billion warrants or Rs 150 crore, which can be converted to an equal number of shares within 18 months from the date of allotment. After the conversion, TIIL's stake in CG Power will grow to 56.61 percent.
