In an effort to generate over Rs 4,000 crore in the next 18 months, board of directors of Aditya Birla Nuvo Limited (ABNL), the company behind apparel retail major Madura Garments, has approved ‘preferential offer’ to the promoters.
The determined price is as per SEBI guidelines. The board has called an extraordinary general meeting of the company on February 6, 2008, to obtain the shareholders’ approval for the preferential issue.
The move is meant to increase the stake of the Kumarmangalam Birla promoted company by 11 per cent. The promoters hold a little over 39 per cent in the company and therefore, the preferential offer should see their stake nearing the majority mark.