Ortel allots 9% preference shares to Indian Metals and Ferro Alloys for Rs 10 crore
MUMBAI: Multi system operator (MSO) Ortel Communications has allotted 9% non-convertible, cumulative, redeemable preference shares to Indian Metals and Ferro Alloys on private placement basis for Rs 10 crore.
The allotment is for a period of five years.
The decision was taken by the Share Allotment Committee of the board of directors of the company has taken the decision.
The issuance of the preference shares was approved through a special resolution passed at the Extraordinary General Meeting (EGM) of the company on 9 April.
With this allotment, the company’s paid-up share capital of the company will increase to Rs 40.47 crore. Excluding the allotment, the paid up share capital was Rs 30.47 crore.
As reported by TelevisionPost.com earlier, the board of directors of Ortel had approved the issue of equity shares to promoter/promoter group entities not exceeding Rs 8.75 crore.
The company has proposed to issue 25 lakh equity shares at an issue price of Rs 35 per share to the promoters on preferential basis for an aggregate amount of Rs 8.75 crore.
It had also approved the acceptance of fresh inter-corporate loan of Rs 8 crore at 9% per annum for a period of five years.
The board has also convened an Extra Ordinary General meeting of the company on 9 April to approve the issue of equity shares and redeemable preference shares.
The company has incorporated a wholly-owned subsidiary in the name of Ortel Broadband on 28 February. The authorised capital is Rs 10 lakh while the paid up capital is Rs 1 lakh.
Jagi Mangat Panda has been appointed as Director on the board of Ortel Broadband. The company will house the broadband business of Ortel. The company holds 99.94% stake in Ortel Broadband while the rest is held by six nominees on behalf of Ortel Communications.