Kesoram Ind to raise 650 cr

New Delhi : B K Birla group firm Kesoram Industries has sought shareholders' approval to raise up to Rs 650 crore through issuance of securities and disposal of two undertakings in West Bengal.

"The Board of Directors of the company at its meeting held on 19th December, 2015 has proposed to raise funds not exceeding Rs 650 crore pursuant to an issuance, offering or allotment," the company said in a statement on Wednesday.

Kesoram Industries plans to utilise the proceeds of the proposed issue towards capital expenditure, working capital, reduction in debt as well as for general corporate purposes. The board had also approved the disposal and transfer of the company's Spun Pipe and the Heavy Chemicals undertakings, both located in West Bengal, it added.

Last date for receipt of completed postal ballot form is January 30, and result of the postal ballot will be announced on February 3. As a part of its plans to realign and reorganise its existing undertakings, it plans to dispose of the two undertakings located in West Bengal, the company said.

The transfer of both the undertakings is proposed to be effected no later than the first half of the 2016-17 fiscal, it said. The company's board also approved divestment of certain of its investments in listed companies at prevailing market prices for the purpose of enhancing cash inflows.

The timing of such divestment will depend upon the market conditions and any approvals required for completing such transaction, it added.