Engro Fertilizer to issue 75 million shares
October 15, 2013
Engro Fertilizer intends to issue 75 million shares out of which 56.25 million shares will be offered through book building process at a floor price of Rs 20 per share. According to JS global securities, the remaining 18.75 million shares will be offered to the general public at the strike price determined through the book building mechanism.
“In addition to this, Engro Corp intends to divest upto 30 million shares out of its existing shareholding at the strike price to the institutional investors on a first come-first serve basis,” said Naveed Tehsin, an analyst at JS. This transaction will likely benefit Engro Fertilizer cash inflows in excess of Rs 1.5 billion. This along with Rs 1.5 billion (150mn shares right issue subscription) equity injection by Engro Corp into Engro Fertilizer will help the company in its capex plan and debt repayment, he added. “The debt restructuring of all the major loans has been finalised and their tenors has been extended by 2.5 years from June 30, 2012. However, the company will only be able to pay dividends after 33 percent of its senior loan worth Rs 13 billion gets repaid,” Tehsin said. Courtesy: Business Recorder
Published in ZaraiMedia.com