Murugappa group company Tube Investments of India Ltd Thursday said its board has approved raising ₹350 crore from Azim Premji Trust and SBI Mutual Fund through a preferential allotment or private placement.
Azim Premji Trust will receive 2.73 million shares worth ₹200 crore while two SBI Mutual Fund schemes, SBI Focused Equity Fund and SBI Magnum Midcap Fund, will receive 1.5 million and 546,000 shares worth ₹110 crore and ₹40 crore, respectively, the company said in a regulatory filing. Both entities will get the shares at ₹731.70 apiece.
Both allotments are subject to shareholders’ approval, the company said, adding that it would hold an extraordinary general meeting on 21 December to secure necessary approvals. On Thursday, Tube Investments also paid ₹587.5 crore to subscribe to equity shares and warrants of CG Power & Industrial Solutions Ltd.
CG Power in a release to exchanges said it is in receipt of ₹587.50 crore from Tube Investments towards subscription to equity shares and 25% upfront consideration towards subscription of warrants of the company. In August, Tube Investments and CG Power had entered into a securities subscription agreement for acquiring a 56.61% controlling stake in the latter via a combination of investment around ₹700 crore. Tube emerged the successful bidder following a Swiss challenge bidding process, which was initiated by the lenders to CG Power.
