Asia Capital’s Board last week resolved to issue 21.329 million shares at Rs. 18 each. The shares amount to 16.3% stake post-private placement.
The two Japanese investors are Y. Watanabe (11.54 million shares) and E. Watanabe (9.79 million shares).
Asia Capital will use the funds raised via private placement to settle outstanding liabilities and for working capital purpose. The move is subject to shareholder and regulatory approval. At present S. Vijayeswarana holds 85% stake in Asia Capital.
ACAP’s net asset per share at company level was Rs. 6.77 as at 31 December 2013 down from Rs. 9.67 from end 31 March 2013. At Group level it was Rs. 2.67 down from Rs. 7.
The highest price in the quarter ended on 31 December 2013 was Rs. 21.80 whilst the lowest and closing price was Rs. 17. On Friday the share closed at Rs. 16.10.
Loss-making ACAP had Rs. 452 million in short-term interest bearing borrowings and Rs. 239 million in overdraft.
Long-term loans amounted to Rs. 1.25 billion.
For the nine months ended 31 December 2013, net loss for equity holders of ACAP was Rs. 444.8 million, up from Rs. 386 million a year earlier.