Is it an issue of preference shares or preferential issue of equity shares to Nalanda?
It is a preferential issue of equity shares to Nalanda. Q: How much does your equity get diluted? A: It doesnt get diluted very much. Nalanda is currently holding about 3.8% and they will be holding 5.5% after the issue. The promoter shareholding will come down very marginally, about 0.2-0.3%. Q: What do you plan to do with that money? A: As you probably know, we had in the past issued warrants to our promoters, which will be converted into equity shares. In the process there will be an inflow of about Rs 135 crore in the company. We will utilise this mainly to install a 100,000-tonne per annum water-based plant in South India. We have not identified the exact location. But it will be South India. We will also be enhancing our distribution and logistics strengths, which are very important for a paint company now in India. There are various expansion programmes currently going on. So, that is how we will utilise the money. Q: There was a study that there are unusually high or unacceptab
